The Obama administration is postponing for one year the requirement that businesses cover their workers under Obamacare.
The administration said late Tuesday that the move recognized that the reporting requirements – the steps businesses have to take to show they were complying with the rules — were complex and they would try to streamline them over the next year.
There will be no penalties the first year on businesses that don’t cover workers. Small businesses, with fewer than 50 workers, were already exempt from that rule. Most large businesses do cover employees now.
The move does not affect the individual mandate – the requirement that most Americans get insurance. And it doesn’t delay the new marketplaces where people and small businesses can sign up for coverage starting in October.
“The Administration is announcing that it will provide an additional year before the ACA (Affordable Care Act) mandatory employer and insurer reporting requirements begin. This is designed to meet two goals. First, it will allow us to consider ways to simplify the new reporting requirements consistent with the law. Second, it will provide time to adapt health coverage and reporting systems while employers are moving toward making health coverage affordable and accessible for their employees,” the Treasury Department said in a blog post.”
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