PPACA Employer Mandate Delayed

Physicians who have 50 or more employees have another year to comply with the "employer mandate" of the Patient Protection and Affordable Care Act (PPACA). The law requires employers with 50 or more employees to offer health insurance coverage or pay a penalty.

The Obama administration announced in a U.S. Treasury Department blog on July 2 that it is delaying enforcement of the mandate until Jan. 1, 2015. It was scheduled to take effect Jan. 1, 2014.

"We have heard concerns about the complexity of the requirements and the need for more time to implement them effectively," Mark J. Mazur, assistant secretary for tax policy, wrote in the blog. "We recognize that the vast majority of businesses that will need to do this reporting already provide health insurance to their workers, and we want to make sure it is easy for others to do so."

The delay does not affect other PPACA provisions, the Internal Revenue Service (IRS) said in a July 8 notice. "This transition relief will provide additional time for input from employers and other reporting entities in an effort to simplify information reporting consistent with effective implementation of the law," the IRS said, adding it "also is intended to provide employers, insurers, and other providers of minimum essential coverage time to adapt their health coverage and reporting systems."

Action, July 15, 2013