Blog Post President of Kainos Partners Shares Insight on Employer Mandate Delay




President of Kainos Partners Shares Insight on Employer Mandate Delay

Originally posted July 10, 2013 on

Businesses Encourage to Move Forward with ACA Compliance in Spite of Delay

In the wake of the Obama administration announcement; that the ACA mandatory employer and insurer reporting requirements will be delayed for one year.  Workplace weekly news decides to seek expert opinion on the impact on businesses.

Gary Jurney, CLU, ChFC, AIF®,President of Kainos Partners, a UBA Partner Firm said, “We believe the delay will in fact ultimately result in some employers choosing to hire more part time employees working less than 30 hours per week.  Those companies this might impact are those with + or ­ 5-10 employees on either side of the 50 employee benchmark.  It could also impact employers who have 35 and under total employees but may have a significant population of part times employees already. When these part time employees¹ hours are counted to determine the number of Full Time Equivalent FTE employees, the employer could be considered as having more than 50 total employees”.

Gary agrees that the delay is good news for employers especially from the financial liability perspective whom have been working feverishly to meet the 1/14/13 deadline; he however encourages employers to move forward with compliance as if there were still penalties for not doing so.  This delay gives employers sort of a ³pre-season² year to get things right before the financial penalties would occur for them, if any.

The Obama administration identified two reasons for the delay.  First, it will allow the administration to consider ways to simplify the new reporting requirements consistent with the law.  Second, it will provide time to adapt health coverage and reporting systems while employers are moving toward making health coverage affordable and accessible for their employees.

In the meantime, here is a quick review of what small and big businesses need to know about the health law and how it will work:

If you are a small business with less than 50 workers, the law’s employer shared responsibility policies does not apply to you. Instead, you will gain access to the Small Business Health Options Program that gives you the purchasing power of large businesses. In fact, you may be eligible for a tax credit that covers up to half the cost of insurance if you offer quality coverage to your employees

If you own a business with more than 50 workers that already offer full-time workers affordable, quality coverage, you are fine – we’ll work with you to keep that coverage affordable.

And if you are a company with more than 50 employees but choose not to offer quality affordable coverage, the administration have provided as much flexibility and transition time as possible for you to move to providing affordable, quality coverage to your workers.


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