The ObamaCare employer mandate requiring businesses to provide their workers with health insurance will be delayed by a year, the administration said Tuesday.
Delaying the requirement until 2015 is a victory for businesses that had lobbied against the healthcare law. The postponement will allow employers more time to comply with the rules and adjust to the system.
“This allows employers the time to test the new reporting systems and make any necessary adaptations to their health benefits while staying the course toward making health coverage more affordable and accessible for their workers,” senior adviser Valerie Jarrett wrote in a blog post.
Many employers had threatened to cut employees’ hours to avoid the new requirements. The change will likely mean that more people buy individual coverage through the law’s new insurance exchanges, which are supposed to be open for enrollment by Oct. 1. This will hopefully curb cutting of employees’ hours, and provide better coverage for consumers, because plans on the exchanges will be stronger than those offered by many employers.
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