Cox Smith Update: Pay or Play Provisions Postponed

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On Tuesday, the U.S. Department of Treasury unexpectedly postponed a key portion of the Affordable Care Act: the “pay or play” provisions that require employers of more than 50 full-time employees to provide health coverage to their employees or face stiff penalties. These provisions had been scheduled to take effect January 1, 2014 but have now been pushed back to January 1, 2015.

The Administration cited complaints by businesses as the reason for the delay. ‘‘We have heard concerns about the complexity of the requirements and the need for more time to implement them effectively,’’ Treasury Assistant Secretary Mark Mazur said in a blog entry posted the Department of Treasury website. ‘‘We have listened to your feedback and we are taking action.’’ The change will not affect other key provisions of the Affordable Care Act, including the individual mandate to obtain health coverage which was previously upheld by the Supreme Court.

The announcement indicates that detailed written guidance concerning the delay will be issued soon, and our Employee Benefits team will keep you informed as that information becomes available.

For more details, visit this blog post from the Department of Treasury.