A key provision in the Patient Protection and Affordable Care Act of 2010, the requirement that businesses provide their workers with health insurance or face penalties, has been delayed a year, according to the Treasury Department. The mandate, which was slated to begin in January 2014, will now go into effect in 2015.
Mark J. Mazur, assistant secretary for tax policy at the Treasury, wrote in a blog post that the extra year will allow the administration to consider how to simplify employer requirements and create more time to implement the law smoothly.
This provision requires employers with 50 or more full-time employees – defined as workers who average at least 30 hours per week – to provide insurance to those workers or pay a penalty of $2,000 per full-time employee.
“We have heard concerns about the complexity of the requirements and the need for more time to implement them effectively,” said Mazur. “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.”
Treasury will be providing further guidance describing the transition to the new regulations shortly.