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Surprise delay in Obamacare will be costly
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Issue
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| Contributor | Imperator |
| Last Edited | Imperator Jul 05, 2013 08:26am |
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| Category | Analysis |
| Author | Tony Pugh |
| News Date | Friday, July 5, 2013 02:00:00 PM UTC0:0 |
| Description | WASHINGTON — One day after the Obama administration delayed the Affordable Care Act’s employer mandate until 2015, critics and supporters of the legislation were hotly debating the cost and effects of the surprise move, while business owners breathed a sigh of relief.
The law required companies with more than 50 full-time employees to provide health coverage in 2014 or face fines of $2,000 per worker. By giving business owners like Zach Davis of Santa Cruz, Calif., an extra year to ponder their next moves, employers may be more comfortable that they’re making an informed decision rather than taking a chance on legislation that is still unfolding more than three years after its passage.
Although Davis’ restaurant and ice cream shop isn’t subject to the mandate because most of his employees work part time, he had been considering expanding his employee coverage through the new health insurance exchanges that are scheduled to come online in October.
“If I had all the information about what the exchanges would do for us in front of me right now, that would be great and I would probably be prepared, as we move toward our (health plan) renewal date, to take that into account,” Davis said. “But given that we might not get that (health plan cost) information until August or September, it makes the window pretty small and it definitely increases the likelihood that we’ll just renew with what we have, see how things shake out with the exchanges and then be in a position to make a really good decision come the end of 2014.”
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Tuesday’s delay will be costly.
The Congressional Budget Office estimates the federal government will lose $10 billion in employer penalties in 2015 because of the delayed enforcement. Likewise, many expect that federal outlays to help low- and moderate-income people purchase coverage will grow with employers no longer required to provide coverage next year. |
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