The Obama administration is winning over some fans who are owners of medium-sized businesses, thanks to a recent announcement that their timeframe to comply has been moved from January, 2014 to January, 2015. The changed compliance date now provides mid-sized and large businesses with more time to seek affordable healthcare coverage for their employees or be faced with steep fines.
Prior to the announcement this week by the Obama administration, businesses that employed 50 or more persons had until January, 2014 to comply and provide healthcare options for their full-time employees. If they failed to do so, they would face harsh penalties, fines that could be assessed should even one worker go without healthcare coverage and be forced to purchase government subsidized healthcare.
Even businesses that already offer adequate healthcare for their employees are befuddled with the new reporting requirements that have been put in place by the federal government. In both instances, employers were mostly relieved by the notion that they have another fiscal year to comply with these regulations.
A debate is continuing to ensue amongst proponents and pundits of Obamacare, with some businesses unhappy with the fact that the act mandates that part-time employees who work 30 hours per week or more are still considered full-time employees under the Obamacare act.
Most businesses that are subject to this new law will also be encumbered by the administrative time it takes to comply with reporting standards.
With the economy projected to grow over the next year, the new extension provides employers with a safety net and some valuable time to get their new process in place, shop for affordable healthcare options they can offer employees and set administrative standards for reporting compliance.
A current trend that’s being seen in rebuttal is mostly due to misinformation over the law, which entails that businesses that employ 50 or more persons must comply. However, in recent months, there have been many voiced opinions from misguided small businesses that employ fewer than 50 persons, thinking that this law also applies to their business.
States like California will be the least affected by the new law. According to the California Chamber of Commerce, more than 90% of its members already offer healthcare coverage to their employees.
Not all lawmakers are positive about this new healthcare law and the limitations and restrictions it imbibes.
“I’ve heard from countless employers in Maine who say that the onerous penalties and provisions in Obamacare provide perverse and powerful incentives to not hire new workers or to cut back on the hours that their employees are allowed to work,” said Sen. Susan Collins from Maine.
House Majority Leader Eric Cantor, R-Va, feels there shouldn’t be such a law in place whatsoever, and that any delay in its implementation should be permanent. “The best delay for Obamacare is a permanent one,” he said.