Obama Delays PPACA Employer Mandate For One Year
By Dr. James Palermo // July 3, 2013
SHREWD POLITICAL DECISION DELAYS UNPOPULAR MANDATE BEYOND 2014 ELECTIONS
ABOVE VIDEO: The Obama administration announced yesterday that the employer shared responsibility mandate also known as “Pay or Play” aspect of the Patient Protection and Affordable Care Act will be delayed by one year. (Video by HSAExperts)
Following complaints from the private sector related to employer concerns about the complexity of data reporting requirements, the Obama administration announced yesterday that it is delaying implementing a key component of the Patient Protection and Affordable Care Act (PPACA) for a year.
With the implementation of the so-called employer mandate, which penalizes employers with more than 50 employees if they fail to provide a minimum standard of affordable health insurance, only three months away from the October 1st enrollment start date, small businesses throughout the nation had been making final strategic decisions on how to reduce the working hours of their employees so fewer employees qualify for the mandated, employer-provided health insurance.
Shrewd Political Decision To Delay Employer-Mandate Beyond Mid-Term Elections
The one year reprieve, which pushes the mandate out to January 1, 2015, not only allows the administration time to alleviate concerns among business owners, but also takes a controversial component of the law off the table before the midterm elections.
The rule change does not affect the so-called individual mandate provision, which requires the vast majority of Americans to buy insurance or pay a penalty, with tax credits provided to those who can’t afford coverage.
In a very shrewd political move, the administration has also appeased, at least temporarily, those employers who are considering whether it makes more economic sense to pay a fine to the government or pay for healthcare benefits for their employees. If implementation of the employer mandate resulted in hundreds of thousands of Americans being dismissed from their employer’s healthcare coverage prior to the 2014 election, the political fallout could be very damaging for the Congressional Democratic authors and proponents of the PPACA.
Senator Baucus And Speaker Boehner Agree On Implementation Of Obamacare: ‘Trainwreck’
In April, Senate Finance Committee Chairman Max Baucus (D-Mont.), who helped write the PPACA, said openly he thinks it’s headed for a “train wreck” because of bumbling implementation. The Obama administration and smart Democrats appear to have found a calculatingly brilliant way to defer the cost consequences and impact of at least part of the “train wreck” beyond the pivotal congressional elections in the fall of 2014.
In response to the announcement yesterday of the delay of part of the implementation of the PPACA, Speaker of the House John Boehner (R-Ohio) released a statement, also saying the entire bill is a “train wreck” and adding the adjective “unworkable” to his perspective on Obamacare.
“The president’s health care law is already raising costs and costing jobs. This announcement means even the Obama administration knows the ‘train wreck’ will only get worse. I hope the administration recognizes the need to release American families from the mandates of this law as well. This is a clear acknowledgment that the law is unworkable, and it underscores the need to repeal the law and replace it with effective, patient-centered reforms,” the statement reads.