The Obama administration announced Monday February 10, 2014 yet another delay in the Employer Mandate portion of PPACA. The first delay pushed the requirement back to 2015 for all “large” employers, meaning those with over 50 employees. This new delay states that companies with 50-99 employees will not have to comply until 2016. For large employers, those with 100 or more employees, the mandate remains in effect for 2015, however, they will only be required to offer minimum essential coverage to 70% of their full-time and full-time equivalent employees instead of the previous 95% requirement, in order to avoid the $2,000 penalty. In addition, for 2015 only, the 30 “free” employees will be increased to 80 “free” employees for purposes of the penalty. The rules for the $3,000 penalty remain unchanged. Employers that don’t currently cover dependent children do not have to cover them until 2016. For those employers that hire seasonal employees, those who work six months or less in a given year, as well as volunteer employees, they will not be required to offer coverage.
Depending on their size, non-calendar year plans do not have to comply until the start of the 2015-2016 year if they meet various requirements (which will be forthcoming). For plans that do need to comply for 2015, both of the 6 month transition rules carried over: employers can pick any 6 consecutive months in 2014 to count employees, and they can use a 6-month measurement period with a 12-month stability period in 2015.
Additional details will be posted as they become available.
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