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Rabu, 03 Juli 2013

Obama administration to delay part of Affordable Care Act

Obama administration to delay part of Affordable Care Act

WASHINGTON —The Obama administration announced Tuesday it is delaying

until 2015 the requirement that businesses with more than 50 employees

provide health insurance to their workers or pay a penalty.



The announcement by the Internal Revenue Service comes after numerous

complaints from businesses that the requirements were too complicated

and difficult to implement in time.



Business groups, such as the National Retail Federation, praised the

delay, while congressional Republicans jumped on the move to reiterate

their opposition to the 2010 health care law.



Other key parts of the law, including the health exchanges where

individuals can buy insurance, are on schedule. The exchanges will

open on Oct. 1, wrote Valerie Jarrett, a senior adviser to President

Obama, in a White House blog released Tuesday.



The delay also does not change the individual mandate, which requires

most Americans to purchase insurance. Some consumers may receive

subsidies to help them pay for the insurance depending o their

incomes.



Jarrett said the move is a sign the White House is paying attention to

the concerns of business.

"As we make these changes, we believe we need to give employers more

time to comply with the new rules," Jarrett wrote. "Since employer

responsibility payments can only be assessed based on this new

reporting, payments won't be collected for 2014."



"We have heard concerns about the complexity of the requirements and

the need for more time to implement them effectively," wrote Mark

Mazur, assistant Treasury secretary for tax policy, in an IRS blog.



"We recognize that the vast majority of businesses that will need to

do this reporting already provide health insurance to their workers,

and we want to make sure it is easy for others to do so," Mazur said.



The delay gives the IRS more time to simplify reporting requirements,

as well as for businesses to get up to speed with reporting systems.

The government still encourages businesses to voluntarily begin

reporting in 2014 so they will be ready for 2015.



Business groups had argued for months that the law created an

administrative burden for businesses as they tried to update

technology and plan to offer health coverage to their employees

without knowing how much the coverage would cost.



Businesses with more than 50 employees would have paid a fee of $2,000

per uninsured employees after the first 30 employees. The

Congressional Budget Office expected those penalties to bring in $4

billion in 2014.

"We commend the administration's wise move to delay the employer

reporting and penalty obligations under the Affordable Care Act," said

National Retail Federation President Neil Trautwein in a statement.

"This one-year delay will provide employers and businesses more time

to update their health care coverage without threat of arbitrary

punishment."



This does not affect businesses with fewer than 50 workers, who were

already exempt from that rule. Most large businesses already offer

coverage to their employees.



Senate Minority Leader Mitch McConnell, R-Ky., said the "White House

seems to slowly be admitting what Americans already know ... that

Obamacare needs to be repealed."



House Republicans, who have tried to repeal the Affordable Care Act 37

times, echoed McConnell.



"The best delay for ObamaCare is a permanent one," said House Majority

Leader Eric Cantor, R-Va.



Various parts of the law have taken effect since its passage in 2010,

including allowing children up to age 26 to remain on their parents'

insurance plans and discounts for prescription drugs for Medicare

patients. More young Americans have health insurance than before the

law, because of that change, and the discounts have saved Medicare

recipients billions of dollars.



However, the more complicated parts of the law, such as the exchanges

and the individual mandates, are set to take effect Jan. 1, and many

of the businesses and groups affected have worried about their ability

to meet the deadlines.

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