July 8, 2013 - On July 2, 2013, the Treasury Department announced that medium- sized and large companies will have additional time to prepare for the mandatory requirement involving healthcare insurance coverage for employees. Originally the mandate was to take effect January 1, 2014; however, now will not go into effect until 2015. Under the Affordable Care Act, companies with 50 or more employees must provide affordable coverage to their full-time employees or risk fines. Businesses have been encouraged to move forward with compliance, however, the extension allows businesses more time to prepare and get answers to questions about the new policy.
The individual mandates related to obtaining coverage are not affected by this decision; self-employed individuals and others who would not be covered by an employer that is subject to the Affordable Care Act mandates must still obtain coverage or face penalties. The Administration plans to publish formal guidance describing the transition within the coming weeks. Goosmann Law Firm attorneys will continue to monitor these changes and advise our clients accordingly.