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Employer Mandate Delayed and Insurance Agency Steps In To Help Businesses
The Obama Administration delays the Employer Mandate of Obamacare until January 1, 2015. With only six months remaining, it is simply not enough time. This is huge for businesses in America. However, what does it mean for the future of Obamacare?
There are 200,000 businesses in the United States with fifty or more employees. Ninety-
Employees are required to work at least thirty hours per week to be eligible for the health insurance. "Due to the law, many businesses are not only cutting back hours, but they are laying people off to fall under this threshold of fifty employees", says Butch Zemar, Chief Sales Officer at Elite Benefits of America.
"With that said, some of the businesses are considering dropping the plan altogether. Let's face it, the employer 'Tax' penalty is less expensive than the group health plan", Zemar continues. This will also allow employees, depending on their status and income, may qualify for tax subsidy that will reduce their overall premium responsibility.
Obamacare brings many questions into play. This law is so complex that after three and half years, since it was signed into law, it is still not enough time to figure out what the law actually says and to build the infrastructure. The government is trying to figure things out as they move closer. "Delaying the mandate will help businesses get the answers to their questions and the Government can have additional time to figure out how to put it altogether", Zemar adds.
Some may think this is a sign of more postponement of the healthcare law. The government has put unrealistic time frames on sections of the law. In the end, will the law stay fully intact? Time will tell…
Moving closer to healthcare reform in 2014, Elite Benefits of America and their insurance agents will continue to keep track of the healthcare law. Elite Benefits of America works with businesses to make sure they are up to date on the current law and regulations that will affect the businesses. For more information about healthcare reform or employee benefits, please call 708-535-3006 or visit www.EliteBenefits.net
Page Updated Last on: Jul 15, 2013