Big Part of ObamaCare Postponed One Year

Employers won't be required to provide coverage until 2015

By John Johnson,  Newser Staff

Posted Jul 2, 2013 5:58 PM CDT

(Newser) – ObamaCare is still going into effect in 2014, but one key component of it is being temporarily shelved. The White House today postponed by one year a rule requiring employers to either provide coverage to employees or face hefty fines, reports the Wall Street Journal. The rule will take effect in 2015, instead of 2014. "We have heard concerns about the complexity of the requirements and the need for more time to implement them effectively," writes Treasury official Mark Mazur in a blog post. The Journal explains that while most employers already provide such coverage, restaurants and retail companies in particular—both of which rely on low-wage workers—were resisting. The rule affects businesses with more than 50 workers.

The Hill calls the decision "stunning" and says it "represents an enormous victory for businesses that had lobbied against the healthcare law." It also notes that the move pushes back the start of the controversial provision until after the 2014 midterms, which should be good news for vulnerable Democrats. The New York Times reports that other key parts of ObamaCare, including the establishment of "exchanges" where people can buy insurance, will take effect as planned in 2014. But "it will be difficult for officials running the exchanges to know who is entitled to subsidies if they are not able to confirm whether employers are offering insurance to their employees," writes Jackie Calmes.

President Obama in a file photo.
President Obama in a file photo.   (AP Photo/Evan Vucci, File)
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