Employer Need-to-Know: Health Care Law Delayed

Like many employers these days, you have no doubt been taking steps to comply with the government’s new Patient Protection and Affordable Care Act, which states that every employer with more than fifty full-time employees must provide adequate health care coverage to their workers. This includes employees who work more than 30 hours an average week, whether or not their work is seasonal or year-round. This health care coverage is important for a variety of reasons, but for many employers the most important factor driving their decision are the steep penalties they will face if they fail to comply with the law.

While the law was originally set to become active in January of 2014, Mark J. Mazur, the U.S. Treasury Department’s assistance secretary for tax policy announced a few days ago in the treasury notes blog that the law would be delayed for another year.

What Does This Means for Employers and Tampa Bay Jobs?

For many employers, the delay announced on July 2, 2013 means more time. More time to maintain current coverage, improve current coverage, or find the financial means to provide health coverage for all employees.

Unfortunately, this delay did not come by itself. It is linked to two other mandates that are being implemented for the Affordable Care act. These new mandates will cover any penalties self-insuring employers, insurers, and any other parties that decide to provide health coverage for workers will receive if they fail to report the health insurance provided to employees.

In addition, this delayed transition will help employers who have to make any shared responsibility payments. Shared responsibility payments refer to specific payments employers must make for each full-time employee they do not offer health insurance to and who receives a premium tax credit. While the delay will not affect whether or not employees are able to receive premium tax credits, employers will not have to make shared responsibility payments for those employees until 2015. For employers without health insurance, the cost per employee is $2,000, so the delay is a welcome relief for many.

While part of the law is being delayed, there are still other areas that will go into effect as planned. This included requirements for individual and group health plans, a ban on the limit of health insurance benefits an individual can have, a 90 day limit on waiting periods for eligibility, and limit maximums for out-of-pocket expenses. In addition, the law will make it so no adults can be denied insurance because of preexisting conditions.

Many fees, like the health insurer tax and transitional reinsurance fees will also go into effect in 2014 without delay.

The delay may give employers time to adjust to the new expectations and fees, but it isn’t a free pass. While they can delay offering health coverage to employees for up to one year, they still must make sure their insurance programs comply with all of the law’s requirements.

As an employer, taking care of your employees is part of your job. While the health care act will help you do just that, make sure you are taking the right steps at the beginning by hiring through our Clearwater professional staffing service. We will help you find a team player who can be beneficial to your Tampa Bay jobs.

HH Staffing Services now has 4 locations here in Florida:

Orlando Jobs – Serving Orange and Osceola counties call 407-401-9496

Clearwater Employment and Tampa Jobs – Serving Hillsborough and Pinellas counties call 727 538 4109

Bradenton Jobs and Sarasota Employment – Serving Manatee and Sarasota counties call 941-751-6262

Ft. Lauderdale Jobs- Serving Broward and Dade Counties call 954-916-2772