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“Pay or play” gets another reprieve

The employer mandate was originally supposed to go into effect on January 1, 2014, and last July, the Obama administration pushed back the deadline to January 2015. In an effort to provide even more of a gradual phase-in of the employer mandate and help employers comply, the final rule has extended the deadline another year for some employers, to January 1, 2016. Here’s a breakdown:

  • While the employer mandate will generally apply beginning in 2015, it will not apply until 2016 to employers with at least 50 but fewer than 100 full-time employees if the employer provides appropriate certification as described in the rules.
  • Employers subject to the employer mandate in 2015 must offer coverage to at least 70 percent of full-time employees to avoid a penalty, and to 95 percent of full-time employees beginning in 2016.
  • For small employers with fewer than 50 employees, there is no change and you are not required to offer health benefits under the ACA.

Want a visual representation of this information?  Click here for our Guide to Employer Shared Responsibility.

Have questions?  Post them at www.mihealthanswers.com, or email them to advisor@mihealthanswers.com.