On July 2, the US Treasury Department announced that the employer mandate — a key provision of the Patient Protection and Affordable Care Act (ACA) — will be delayed until 2015.
|REMINDER: What is the Employer Mandate?
Companies with 50 or more full-time or full-time equivalent employees must offer full-time employees and their dependents (i.e., children up to age 26) coverage that is affordable and provides minimum value beginning in 2014 or face steep penalties. (Now delayed until 2015.)
What is the impact of delayed employer mandate?
The delay means companies will not face penalties in 2014 for failing to provide insurance to their employees. However, companies are strongly encouraged to do so and guidance about this is expected from the government in the coming weeks.
However, it’s what is not changing that is as significant as what is changing:
- The individual mandate is still in effect, meaning most Americans will still be required to have health insurance by January 1, 2014 or face a penalty tax.
- October 1 still marks the opening of the Exchanges/Marketplaces.
- Certain individuals will still have access to premium tax credits.
- Any other provisions of the Affordable Care Act are still in effect.
What if my employer decides not to provide health insurance in 2014?
The individual mandate means you will need to purchase your own health insurance effective January 1, 2014.
If your employer chooses not to offer coverage, call Virginia Medical Plans right away! We will help you find the right coverage for you and/or your family.