Should The PPACA Employer Mandate Be Delayed?

A bill was recently introduced in the U.S. Senate that would give employer until 2016 to comply with a health care reform law provision requiring them to offer coverage to full-time employees or pay a fine.  The measure, S. 1330, which was proposed by Senator Mark Begich, D-Alaska, follows a one-year delay announced earlier this month by the U.S. Treasury Department.  Federal regulators has decided to hold off until 2015 the enforcement of provisions of the health care reform law requiring most employers to provide qualified, affordable health coverage to their employees. 

The House of Representatives also has approved bills delaying until 2015 both the employer mandate and the requirement that individuals enroll in a qualified plan or pay a fine.  However, before the votes, the Obama administration said the president would veto both bills, even if approved by the Senate, because the legislation on the employer mandate is “unnecessary” and the bill seeking to delay the individual coverage mandate would lead to higher insurance premiums and a greater pool of uninsured U.S. residents, the administration said in a statement.  “Enacting this legislation would undermine key elements of the health law, facilitating further efforts to repeal a law that is already helping millions of Americans stay on their parents’ plans until age 26, millions more who are getting free preventive care that catches illness early on, and thousands of children with pre-existing conditions who are now covered,” the administration said in the statement. 

However, after the House votes, U.S. Rep. Tim Griffin, R-Ark., said the Obama administration erred in the way it granted employers the one-year reprieve from the law’s coverage and reporting requirements, as well as its refusal to extend the same relief to individuals.  “The White House may believe it can unilaterally delay implementation of Obamacare’s employer mandate, but only Congress can change the law,” Rep. Griffin, the primary sponsor of the House bill to delay the employer mandate, said in a statement.  “Unlike the president, we know it’s not fair to give businesses and labor unions relief from Obamacare’s job-crushing provisions and leave families to deal with the disastrous consequences.”

So do you think that the delay for the employer mandate should be granted?  What impacts will be on your organization if this mandate was not delayed?  Let us know.