Tuesday, July 2, 2013

White House Delays Implementing Obama Care

Implementation of ObamaCare has been delayed by the White House itself, as reported in an article by Kelly Phillips Erb in Forbes today. There are several components of this delay.

The "Small Business Health Insurance Exchange" system, called "SHOP" should be in place by January 1, 2014 with employees of businesses with fewer than 100 persons offering open enrollment on October 1, 2013. SHOP was designed to provide choice and competition – and therefore reasonable price for coverage. But, at present, there is only one option available through these exchanges, and not all states have signed on to the idea of exchanges. And "costs have skyrocketed," according to the Forbes story.

For businesses with more than 50 employees, the White House has announced a one year delay on implementation of ObamaCare:

  • Reporting requirements have been suspended throughout 2014.
Employee benefits need not be reported to the IRS on 2014 W-2 forms
  • Employer penalties for non-compliance will not apply for 2014

Proponents of the health care act are concerned about these delays in implementation. And Senator Max Baucus (Democrat from Montana), a co-author of the 2010 health care legislation, recently called it a "train wreck."

Link:

http://www.forbes.com/sites/kellyphillipserb/2013/07/02/white-house-suspends-tax-other-reporting-requirements-for-obamacare/?partner=yahootix

More news on this topic from the Washington Post at:

http://www.washingtonpost.com/blogs/wonkblog/wp/2013/07/02/white-house-delays-employer-mandate-requirement-until-2015/?hpid=z1

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