Some good news for a change for mid-sized employers:
Another day, another Obamacare delay. Once again, the employer mandate, which in theory requires businesses with 50 or more employees to provide qualifying health coverage for employees, is the target.
Last summer, the administration put the requirement on hold for an extra year. Now it’s tweaking the provision even further. Businesses with between 50 and 99 employees will not be subject to the employer mandate until 2016. The administration says it will require employers participating in the delay to certify that they aren’t cutting back on jobs strictly to fall under the 100-employee threshold.
The administration is also tweaking the coverage rules for larger businesses. Employers with 100 or more employees will now only have to provide coverage for 70 percent of their workers through 2016. Previously, those firms had been required to give coverage to 95 percent of their workers to meet the requirement.
This is an evolving situation that will not be resolved with this latest executive order. In fact, there is serious debate on whether the President is overreaching his authority. Other conversations surround eliminating the employer mandate in part or entirely. The President insists it is not a penalty on employers, but a way to “make everyone share the burden of the cost” of healthcare for all. A fee, a tax, a penalty, it is all money out of your business. We will keep monitoring the situation.