PPACA Wednesday: Mandate Delay for Businesses

Wow, it was really nice of the Obama administration to time their announcement perfectly with my next article on PPACA.  In case you haven’t heard, the Obama administration decided to delay the implementation of the employer mandate until 2015.  The reason they gave was due to complaints from employers saying that the reporting requirements were too cumbersome.

This blog is not a political discussion about PPACA.  I will discuss why decisions were made, though.  In this case, this was the right decision to make.  Companies were really struggling with how to implement the requirements of PPACA.  That includes companies that already provide health insurance for their employees.  Also, it was motivating employers to hire contractors instead of employees in order to get around the requirement.  So, it doesn’t matter which side of the isle you are on, is it a good idea to motivate employers to hire contractors instead of employees and/or motivate employers who already provide health insurance to stop providing health insurance?  In my opinion, no.  With that said, if the implementation of the law were further along (yes, the government is not hitting their deadlines), a solution would have been available as the private sector was already trying to determine solutions for these companies.  That is the beauty of our country.  Someone finds a need and provides a solution.  But I digress…

So, what does this mean for the individual?  If your employer already provides health insurance, you shouldn’t have to worry about replacing your group policy with an individual policy.  If you don’t have health insurance or don’t have it through your employer, you will still be subject to the new health insurance requirements in 2014 including the penalty if you don’t have insurance that meets the governments requirements.  This means that, for the majority of people, your cost of insurance will go up.  How much will it go up and how much will it cost?  See my post from last friday and the link to the subsidy calculator.

More to come…

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