ACA Employer Responsibility Relief Calls for Planning

February 21, 2014 ( - Final regulations implementing the employer responsibility provisions under the Patient Protection and Affordable Care Act (ACA) provide some relief for employers, but require careful planning.

By Rebecca Moore | February 21, 2014
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Under the final regulations, companies with 50 to 99 employees that do not yet provide quality, affordable health insurance to their full-time workers will report about their workers and coverage in 2015, but have until 2016 before any employer responsibility payments could apply.

In addition, the final rules phase in the percentage of full-time workers to whom employers with 100 or more employees need to offer coverage—from 70% in 2015 to 95% in 2016 and beyond (see “Treasury Modified Rules for ACA Employer Mandate”). Employers in this category that do not meet these standards will make an employer responsibility payment for 2015.

“This is to ease employers into the shared responsibility rule and protect them from the ‘no-coverage’ penalty,” Andy Anderson, partner at Morgan Lewis & Bockius LLP in Chicago, tells PLANSPONSOR. The 70% rule will provide employers some cost relief and give them more time for planning.