The dust is still settling on the implications of the decision to delay the employer mandate until 2015. But we know there are many ripple effects of the decision on the health reform plan as a whole.
Kaiser Health News reports the following:
The delay is unlikely to reduce the number of people that have insurance coverage since most large employers affected by the delay already offer health insurance to their employees.
However, the delay could cost the government $10 billion in fines that would have been levied against employers that had employees seek subsidized coverage on the marketplaces (a.k.a. exchanges).
Some employers may decide to "drop and dump" onto the marketplace -- drop health insurance and send employees to the exchange. Such action would bring no employer penalty in 2014.
Marketplaces will have difficulty verifying insurance or eligibility for federal subsidies since employers are not required to report coverage.
The individual mandate stays in place.
Small businesses (under 50) that offer health insurance must still meet essential health benefits requirements, which will, more than likely, increase the premiums.
MBGH will update you as we learn more about the specific implications for employers.