Employer Mandate Penalties Delayed

899eeb5509f0c5479648_peggy_mchale.jpg
899eeb5509f0c5479648_peggy_mchale.jpg

On July 2, 2013, the U.S. Treasury Department announced that the implementation of the Pay or Play Rules of the Affordable Care Act (ACA) will be delayed one year until January 1, 2015.  However, they cautioned that employers should not delay their compliance planning.  The government’s decision to postpone the employer mandate will allow the government to provide more guidance to businesses.  The ACA imposes penalties on large employers (defined as those with 50 or more full-time equivalent employees) that do not offer affordable minimum value health plan coverage to their full-time employees.

According to the announcement: “We recognize that this transition relief will make it impractical to determine which employers owe shared responsibility payments (under Section 4980H) for 2014.  Accordingly, we are extending this transition relief to the employer shared responsibility payments.  These payments will not apply for 2014.  Any employer shared responsibility payments will not apply until 2015.”  This means that organizations will not face penalties until 2015 over employees who receive premium tax credits to purchase coverage on a government run-exchange. 

It is important for employers to remember that implementation has only been delayed.  These rules have not been repealed.  As the Treasury Department noted in its announcement, the implementation of both the penalties and the employer reporting obligations has been delayed to allow employers time to adapt their health coverage and reporting systems to meet the requirements of the ACA.  Given the complexity of the Pay or Play Rules, employers should continue to establish their compliance strategies with a sense of urgency.

Sign Up for E-News

Equally important to remember, is that the delay in the implementation does not affect any other provisions of the ACA.  Therefore, employers must continue to comply with provisions of the ACA already in effect and continue to prepare for compliance with provisions of the ACA set to take effect in the near future.  In an analysis done by PricewaterhouseCoopers, it is noted that “many ACA provisions are unaffected by the delay, and employers must continue to implement and comply with them.  New individual and group health plan requirements taking effect for 2014 plan years include a ban on annual dollar limits on essential health benefits, a 90-day limit on eligibility waiting periods, new out-of-pocket limit maximums, the elimination of preexisting conditions exclusions for adults, and coverage of clinical trial participant costs.”  Additionally, new fees and assessments and a health insurer tax are not affected by the delay.

No Small Cost

It was also noted that this move to delay the mandate will cost $12 billion in lost revenue and additional costs, according to the Congressional Budget Office (CBO).  According to the CBO, “one million fewer people will get employer coverage in 2014 as a result of the change, and half of those will turn to new government health-insurance exchanges or Medicaid for coverage.”  In a letter written to House Budget Committee Chairman Paul Ryan, the CBO stated that the delay of the employer mandate would result in the loss of a projected $10 billion in employer penalties that would have been assessed in 2014 and collected in 2015.  Additionally, costs for insurance exchanges that will allow individuals to sign up for health insurance starting in October will increase by $3 billion.

I would like to thank Caroline Ryder for preparing this article with me.  Caroline is a Marketing Analyst with C2G Resourcing, a subsidiary of Consultants 2 Go, LLC.  Don’t forget, you can email me at Peggy@Consultants2Go.com with any questions you might have and I’ll be glad to answer them.  You can also follow me and my business on Twitter @peggymchale and @consultants2go

 

Peggy is the co-founder of Consultants 2 Go® (C2G), a consulting firm that provides marketing solutions to Fortune 500 companies in the Financial Services, Telecom, Life Sciences and other industries. Consultants 2 Go was just named to the Inc. 500/5000 List as one of the fastest growing companies in the United States. Prior to starting C2G, Peggy was a Vice President at American Express. She holds an MBA from St. John’s University and a BA from the College of Mount Saint Vincent. She recently served as a member of the Advisory Board for The Academy of Our Lady of Peace, New Providence, NJ.

The opinions expressed herein are the writer's alone, and do not reflect the opinions of TAPinto.net or anyone who works for TAPinto.net. TAPinto.net is not responsible for the accuracy of any of the information supplied by the writer.

TAP Into Another Town's News:

You May Also Be Interested In

Sign Up for E-News

SOMA

A Tale of Two Very Different Town Administrator Searches

Both Maplewood and South Orange are looking for new town administrators at the same time, a rare occurrence.

And their approaches couldn’t be any more different.

Maplewood, whose long-time administrator Joseph Manning is retiring May 31, launched its search last month the old-fashioned way: hiring a recruiting firm and letting them do the heavy lifting (or more appropriately the ...

AtlantiCast

AtlantiCast: Episode 12

On this week’s episode of AtlantiCast, decade of excellence makes headlines, as Atlantic Health’s place on Fortune Magazine’s 100 Best Companies to Work For List leads off the newest episode of AtlantiCast. Also on this week’s show, check out the newest “hybrid” operating room at Morristown Medical Center and find out how Atlantic Health is helping local ...

Maplewood Police Blotter - Two Teens Arrested for Theft from Auto

February 20, 2018

February 12 - Theft; A resident from Burroughs Way reported that sometime over the past day, a snow blower was stolen from an open garage.

February 17- Theft from Auto; At approximately 5:15 p.m., two males were observed going through vehicles on Hillcrest Rd.  Officers responded to the area and were able to locate two males fitting the description. The males, 18 year ...

South Orange Police Blotter - Two Arrested for Robbery in South Orange

Adult Arrest - Robbery - Shawn Ray Newsome, a 20 year old Newark resident and a 17 year old juvenile were arrested on Saturday, Feb. 3, at approximately 10:45 p.m. for robbery. Two male victims reported that as they were walking on South Orange Ave near the Newark border, they were approached by three actors (described as black males wearing dark clothing and black masks) who ...

Women's Club of Maplewood Donates $300K to Maplewood Library Foundation Capital Campaign

February 23, 2018

MAPLEWOOD, NJ - The Maplewood Library Foundation's Capital Campaign received $300,000 from the Women's Club of Maplewood on Thursday, the first major gift since the campaign began on Feb. 22, according to a release from the Maplewood Library.

The capital campaign is raising funds to renovate the main Maplewood Library "that will serve the community for generations to ...

Maplewood Chili Cookoff this Sunday Combines Food, Family Fun, and Fundraising for a Good Cause

Update on February 23: All Tasting Passes to the Maplewood Chili Cookoff are sold out. A few more spots are left to submit a chili, which can be done here.

MAPLEWOOD, NJ - There's a new annual tradition in SOMA: The Maplewood Chili Cookoff. Back at The Woodland for its second year on Sunday, Feb. 25, the cookoff has local residents sharing their best chili ...

Upcoming Events

Fri, February 23, 12:00 PM

St. Andrew & Holy Communion Parish Hall, South Orange

Lenten Friday Fish Fry Dinners

Food & Drink

Carousel_image_982bc8344531b1a37c85_par_440

Fri, February 23, 7:00 PM

Par 440 Restaurant & Lounge, Short Hills

The Extra Rich In Class Dinner Show with E.R.I.C.

Arts & Entertainment Food & Drink

Carousel_image_af1b89eae735bf536426_par440_promo

Fri, February 23, 7:00 PM

Par 440 Restaurant & Lounge, Short Hills

The Extra Rich In Class Dinner Show with E.R.I.C.

Arts & Entertainment Food & Drink

Carousel_image_337d02082fcbf48f3beb_mms_presents_r_h_cinderella

Fri, February 23, 7:30 PM

Maplewood Middle School Auditorium, Maplewood

Maplewood Middle School Presents Rogers & ...

Arts & Entertainment Education

School Walkout Efforts Reach West Orange High School

February 22, 2018

WEST ORANGE, NJ — Hundreds of West Orange High School (WOHS) students participated in a peaceful walkout Wednesday afternoon in support of their fellow classmates in South Florida, where a gunman killed 17 people last week.

“They want to see change [in gun control],” said WOHS Principal Hayden Moore, who was present during the impromptu student-organized walkout.

Indictment Handed Down in Millburn Carjacking

TRENTON, NJ – An indictment was handed down in the November carjacking in Millburn where a 13-year old girl was allegedly grabbed by the neck and the suspect threatened to kill her. 

The 11-count state grand jury indictment charges Ahmed Anthony, 30, of Newark with conspiracy, carjacking, robbery and making terroristic threats among other charges. The conspiracy in the first-degree ...

Protesters Gather in Westfield to Demand Gun Control After Parkland Shooting

February 23, 2018

WESTFIELD, NJ — Protesters gathered outside of Rep. Leonard Lance’s Westfield office Wednesday to rally for gun law reform and to hold a vigil after the recent Parkland, Florida, school shooting.

The Westfield Activist group Westfield 20/20 organizes weekly protests outside of Congressman Lance’s office but, to many, this protest felt different. Attendees included ...

Shouts of Racial Slurs Bring Police to Sparta Theatre

SPARTA, NJ – Sparta police were called to the New Vision Sparta Theater on Sunday night because of a woman shouting slurs in a screening of Black Panther.

Former New Jersey Assembly candidate Michael Grace was in the theater when two people started yelling racial slurs including “look at these ‘n-word’” and “can you believe these ...

Weekly Specials at Ashley Marketplace & Cafe - Feb. 23 to March 1

February 23, 2018

Shop Ashley Marketplace & Cafe for your everyday needs!

This week's specials are:

Alaskan Cod Fillet $9.99lb (Ashley Fish Market)
Chuck for Stew/Stroganoff $6.99lb (Meat)
Thumann’s Deluxe Ham $8.98lb (Deli)
Midnight Moon $18.99lb (Cheese)
Red Globe Grapes $3.49lb
Cavendish Hash Browns 2/$5
Beef Meatloaf $6.99lb (Prep Food)
Polly O Ricotta $5.99 ...

Free Cardiac and Concussion Screenings for Young Athletes

The Matthew J. Morahan III Health Assessment Center for Athletes (MJM) at RWJBarnabas Health will provide free cardiac and concussion baseline screenings to young athletes on Saturday, March 3, from 8 a.m. to 2 p.m. at South Mountain Recreation Complex, Codey Arena, 560 Northfield Avenue, West Orange, NJ.

When preliminary testing to identify serious cardiac problems is provided to ...

Parkland Moms Club Seeks Cards for Teachers and First Responders

In less then 24 hours, the Parkland Moms Club put a card making event together at the park next to the amphitheater which has turned into a massive memorial. Kids from infants to 5th graders helped create cards for teachers, first responders, and hospital workers. Paulina Splechta donated her amazing photography skills and sent us tons and tons of pictures. No matter your age, there is a way ...