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"Affordable Care Act: Employer Mandate Delayed for Medium-Sized Employers"

By: Jill E. Hall and Lenna R. Chambers, Attorneys at Law
Health Care Reform Alert
February 11, 2014

The employer mandate provision of the Patient Protection and Affordable Care Act (ACA) has been wildly controversial since its enactment. Large employers, those with 50 or more full-time equivalent employees, have been bearing down for the requirement that they offer health insurance to their full-time employees (those working 30 or more hours per week) and their dependents or else pay a potential penalty. Originally, the law required large employers to begin offering health insurance by January 1, 2014. In July of 2013, the mandate was pushed back to January 1, 2015, for all employers.

On Monday, February 10, 2014, some employers were afforded yet another reprieve from the law. The Obama administration announced on Monday that medium-sized employers (those with 50 to 99 employees) have until January 1, 2016, to comply with the employer mandate. This is certainly welcome news for these employers as they continue to weed through the complexities of the mandate and applicable penalties.