Groups Praise Delay Of Key Health Care Mandate
Saying that it has heard business' concerns regarding the complexity of reporting requirements and the amount of time to implement changes, the Obama administration said it's delaying a key part of the Affordable Care Act for another year.
The mandate that employers offer health insurance to employees or pay a penalty will not go into effect until 2015.
"We have heard concerns about the complexity of the requirements and the need for more time to implement them effectively," wrote Mark J. Mazur, assistant secretary for tax policy at the treasury department. "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. We have listened to your feedback. And we are taking action."
Mazur said the delay will allow the administration to consider new ways to simplify reporting requirements and will give employers more time to adapt to health care coverage and reporting systems. He said the initial 21-page application for health insurance has been slimmed down to three.
Under the ACA, insurers, self-insuring employers and employers with full-time employees will be required to report information. Mazur said proposed rules on implementation are expected to be published this summer. He went on to say that the entities required to report information will be encouraged to do so voluntarily in 2014 to test for full implementation in 2015.
Business groups praised the decision to delay the employer mandate.
"Massachusetts and our business community knows from experience how complex it is to implement wide-ranging health care reform and employer mandates, and to do it in a fashion that does not increase the burden on businesses," said Stuart Loosemore, director of government affairs and public policy for the Worcester Regional Chamber of Commerce. "It is refreshing to hear that the president and his administration wish to make the implementation of nationwide health care reform as smooth a transition as possible and we applaud his efforts in being mindful of the impact this sweeping reform will have on the business community."
Jeannie Hebert, president of the Blackstone Valley Chamber of Commerce, said the ACA is well-intentioned, but implementation is challenging for small businesses in particular. She also expects insurance rates to increase as insurance companies take on more risk under universal coverage, which issues another challenge to business.
"I'm pretty happy that they delayed it, because it means they've recognized that it needs another review," Hebert said.
Response from the National Federation of Independent Business was stronger.
In a statement, Director of Federal Public Policy Amanda Austin said, "This is simply the latest evidence that implementation of this terrible law is going to be difficult if not impossible, and the burden is going to fall on the people who create American jobs. Temporary relief is small consolation. We need a permanent fix to this provision to provide long-term relief for small employers."
Kristen Lepore, vice president of government affairs at the Associated Industries of Massachusetts said the mandate isn't ideal for Massachusetts, which already has 98 percent of residents insured.
"It makes absolutely no sense for us to have to change what's working," she said.
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