The Obama administration announced Tuesday that it is delaying a major provision in the health care overhaul, putting off until 2015 a requirement that many employers offer health insurance. The mandate was originally set to kick in for 2014, but will now start in 2015.
The law requires companies that employ 50 or more workers to offer coverage or face fines. The Treasury Department and the White House said that, based on complaints by employers that the system for reporting the coverage was too onerous, they would simplify that system and give employers an additional year to comply.
The decision effectively means that penalties that would have been assessed against non-compliant businesses will be delayed until 2015.
Note this announcement intervened while few days ago, a new study by Newtek Business Services showed that independent business owners were still confused over the coming healthcare law regulations.
More from Newtek Business Services:
Based on a poll of over 1,000 respondents, one of the key findings from the June SB Authority Market Sentiment Survey is that 52% of business owners do not know how to prepare for the upcoming healthcare reform changes. Of the remaining, 24% plan to reduce benefits to employees, 13% plan to rebid their policy and 11% plan to reduce business expenses.
Moreover, Remind that on June 19, CNBC underlined that:
Small business owners’ fear of the effect of the new health-care reform law on their bottom line is prompting many to hold off on hiring and even to shed jobs in some cases.
Forty-one percent of the businesses surveyed have frozen hiring because of the health-care law known as Obamacare.
Therefore, in the short term, delaying ObamaCare will give small businesses more time to be in conformity with the law and to manage its impact. At least, they could stop firing people which will be a boost for NFP to the extent that small businesses add the majority of jobs, according to ADP:
Businesses added 188,000 jobs in June, according to the ADP National Employment Report, up from 134,000 jobs added in May.
The biggest gains were among small businesses, which added 84,000 jobs in June. Medium-sized firms added 55,000 positions, while large companies — those with more than 500 employees — added 49,000 jobs.