Administration Delays Health Law Requirement For Large Employers To Provide Coverage

Obama Administration Announcement

During a presentation at the Independent Insurance Agents of Texas Annual Conference in Dallas Texas last week one of the key points I made was, “We should expect political volatility to further confuse an already complex environment”. I guess I was right. This decision by the Obama Administration pushes back the “Pay or Play” mandate 12 months. At a practical level this is a welcome change. However, we should not let this generate a false sense of security. Let's look at what did not change.

1. The ACA is still alive and well.

2. The mandates driving premium increases are still in place

3. The individual mandate to have coverage in 2014 or pay a tax penalty is still in place.

4. The individual exchanges are still projected to be operational in 2014.

5. The “pay or play” is still here. Since the administration postponed the implementation they now have 12 more months to strengthen their resolve, plug all the loopholes and prepare for stringent enforcement.

Allied National’s Funding Advantage product for small employers remains a very desirable solution for the small employer. Don’t become complacent The impact of the ACA driven rate increases will still arrive on schedule. The core issues have not changed.