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Employer mandate delay costs federal government $10 billion

The one-year postponement of the Affordable Care Act’s employer mandate provision may cost the federal government approximately $10 billion.

A report from the Congressional Budget Office found that the delay will prevent Washington from collecting billions in fines in 2015. According to Fox News, pushing back the implementation of the employer mandate will allow employers with 50 or more employees more time to prepare for the ACA, which will result in fewer penalties and revenue for the federal government.

Modern Healthcare reported the CBO’s financial analysis concluded that more workers may enter the state health insurance exchanges.

“Of those who would otherwise have obtained employment-based coverage, roughly half will be uninsured and the others will obtain coverage through the exchanges …” the report stated, according to the news source.

With new health coverage taking effect on Jan. 1, 2014, and the individual mandate currently still in place, Fox News reported many workers may still have to choose to rely on their employer’s existing coverage, entering their state’s health exchange or paying penalties.

CBO also projected that the cost of expanding health coverage to more workers may reach $1.375 billion by 2023.

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Erin Woulfe
Erin Woulfe
Erin Woulfe likes to write about things that matter. Keeping her finger on the pulse of what’s happening in the public sector world, she blogs about the latest legislative news and employee benefit trends that affect our school, city and county clients. She’s been with NIS since 2002. “I love connecting to our clients and providing them with the tools they need in order to administrate their plan,” says Erin. “Whether that be materials to educate their employees on certain benefits, how to effectively communicate change within an organization or just providing tips and how-to’s to help them make their job easier.”

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