The Obama administration has delayed the employer mandate for medium-sized businesses under the Affordable Care Act until 2016, potentially requiring employees to go into the new exchanges to obtain mandatory health insurance next year.
The ACA originally called for all employers with 50 or more employees to provide insurance for full-time workers starting in 2014, when the individual mandate went into effect and ACA insurance coverage began.
The administration then delayed the employer mandate until 2015. The latest regulations give employers with 50 to 99 employees until 2016 to comply with health insurance requirements.
Employers with 100 or more employees must offer coverage to 70% of full-time workers in 2015 and 95% in 2016 and later years, according to the rules issued Feb. 10, by the Treasury Department and Internal Revenue Service.
The 95% coverage requirement also applies to medium-sized businesses in 2016. Employers with fewer than 50 employees do not have to offer health insurance under the ACA.
Employers that fail to meet the requirements would pay a tax penalty, as would most individuals who do not have coverage through their employer or the individual insurance market.
Employer mandate information (PDF): http://1.usa.gov/1ocjjCh