Affordable Care Act “Play or Pay” Penalties Postponed Until 2015
July 3, 2013 by Matt Morbello
The U.S. Department of the Treasury yesterday announced, with little fanfare, that it will not enforce the employer shared responsibility (aka “play or pay”) provisions of the Affordable Care Act until 2015. The details are scarce, but it appears that the Obama administration acquiesced to pleas from employers and insurers that they would need more time to comply with the Act’s information reporting provisions. You can read the full announcement here:
The play or pay provisions of the Act affects employers of more than 50 employees and have already compelled Unions and employers to agree to changes in benefits in anticipation of the original January 1, 2014 effective date. As it stands today, it appears that other provisions of the Act — e.g., the restriction on waiting periods in excess of 90 days and ban on annual maximums — will still take effect in 2014. The Department promises further details in the coming week. We will keep you posted as we learn more.
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