Because of the subsidy rulings lately in the higher courts, there is some buzz that the Employer Mandate slated to begin January 1, 2015, may be delayed for another year. Some of the people close to the implementation of ObamaCare as it affects larger employers are saying that there may be another delay to sort out all of the issues and make a clean start in 2016. I can see that. The Employer Mandate has already been delayed for groups with employee totals of 50-100 already in order to give them a bit more time to comply. Who knows. There are many reasons that support both sides.
Employers with 51-99 employees have already been given a reprieve until 2016
All of our employers that are over 50 employees but under 100, have already been given a pass for 2015. No Employer Mandate for those groups, yet. Some people are angry, saying that everyone should be made to comply, now. I think that easing into something this cumbersome is a good thing. Another year of education and wordsmithing the law is a good thing. Some of our groups that fall into that category have already resolved themselves to set up Health Insurance under the Employer Mandate. There are some strategies that may be afoot to help companies that already run a thin profit margin, but want to comply with the Employer Mandate.
Employer Mandate strategies for companies that want to comply with the ACA
Think about this for a minute. The Employer Mandate specifies that companies must offer Group Health Insurance to their employees that work at least 30 hours a week. The key word here is “offer”. When you have a company that has employees earning lower wages, the employees do not want any money out of their checks. Many of them are living paycheck to paycheck. Unless the employer is willing to pay for most of the bill for Group Health Plan, most lower wage earning people do not want to spend the money. Most of them do not see the value in it. They want it, but they just cannot afford it, in many cases. So my point is, many employers are worried about having to buy Health Insurance for all of their employees. Its not going to happen. Most employees are not willing to spend the $180 or so a month, equaling the 9.5% limit that the employee pay under the ACA