AFFORDABLE CARE ACT EMPLOYER MANDATE DELAYED FOR MEDIUM SIZED EMPLOYERS

September 19, 2014

By Parker Himes

The Treasury Department on Monday announced that employers with 50-99 full-time employees will be given until 2016 to offer insurance to full-time employees before risking a federal penalty. The 2016 deadline is two years longer than the original deadline under the Affordable Care Act.  Under the Act, a full-time employee is anyone who works 30 or more hours per week.

Also announced on Monday is another type of grace period for employers with 100 or more full-time employees. Originally, employers were required to offer coverage to 95% of full-time employees by 2015.  Under the new rules, however, employers with 100 or more full-time employees can avoid the federal penalty for failing to offer coverage by offering insurance to just 70% of full-time employees by 2015 and 95% of full-time employees by 2016.  Importantly, however, employers are still subject to a $3,000 penalty for each employee in the 30% not offered health insurance who buys coverage on a state health-care exchange and qualifies for subsidized premiums.

Administration officials also said Monday that they will issue a separate set of rules in the next few weeks related to how employers must report their employees’ insurance status to the government.   The Firm will be monitoring the law’s progress and will keep you up to date on any significant developments.

If you have any questions related to this issue or any other aspect of the Affordable Care Act, we encourage you to contact an attorney at the Firm for clarification.

Finally, please join us for a presentation on the Affordable Care Act at the Firm’s 34th Annual School Law Seminar on Saturday, March 1 at McDonald’s Hamburger University in Oak Brook.  As always, board members, district and building level administrators may register for no cost on the Firm’s website (http://edlawyer.com/law-seminar-registration). We look forward to seeing you there.