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Press release

Administration announces additional time for employers to adapt health coverage and reporting under the ACA

 FOR IMMEDIATE RELEASE: February 28, 2013

 CONTACT: CARRI ZIEGLER (916) 492-2707

As you may have heard, the Obama Administration has announced that it will delay the insurance reporting and employer responsibility payment provisions of the Affordable Care Act until 2015. This delay does not impact small business owners because those who have fewer than 50 employees already are exempt from the employer responsibility requirements of the law.

The delay will allow additional time for the Administration to consider ways to simplify the new reporting requirements for large businesses and it gives large employers another year before they must follow those reporting requirements.  This change affects relatively few employers.  More than 92 percent of California employers with more than 50 employees already offer health insurance to their employees, and we expect them to maintain or expand coverage during 2014.

All other provisions of the health care law remain unchanged.  There will continue to be an individual responsibility provision that requires citizens to obtain health coverage and the state’s health insurance marketplace, Covered California, still is expected to open for enrollment on October 1, 2013 – offering health care coverage that takes effects on January 1, 2014. Yesterday’s announced delay will have no affect on employees’ access to premium tax credits that will be available under the law when workers purchase individual coverage through Covered California or gain coverage through the state’s Medi-Cal program.  And, small employers that offer coverage still will be eligible for a tax credit of up to 35 percent of their premiums now and up to 50 percent of their premiums beginning next year.

For additional information on the announcement, following are links to news releases from the White House and the U.S. Treasury Department:

We’re Listening to Businesses about the Health Care Law –

Continuing to Implement the ACA in a Careful, Thoughtful Manner –

Learn more about employer responsibility requirements here