Obamacare Mandate: Delay In Affordable Care Act

Obamacare requires businesses with 50 or more employees averaging at least 30 hours per week to provide health insurance coverage - or else.

Published on: Jul 22, 2013

The White House this week announced it would delay by one year a provision in the Affordable Care Act requiring employers to provide health insurance for their employees.

The one-year delay will allow the administration to streamline the process for complying and provide farm employers with the information they need to follow the law.

Business groups have lobbied for elimination or delayed implementation of the "employer mandate" citing reporting problems, burdensome provisions and potential for limiting job creation.

Obamacare Mandate: 30-Hour-Week Is Now Full-TIme
Obamacare Mandate: 30-Hour-Week Is Now 'Full-TIme'

(Orignially published Dec. 6, 2012) The Obamacare healthcare reform law defines "full-time" work as averaging only 30 hours per week. That means labor-intensive ag businesses employing 50 or more workers must provide health insurance or pay a fine, according to analysts for the Northeast Equipment Dealers Association.

The term 'full-time employee' means, with respect to any month, an employee who is employed on average at least 30 hours of service per week – 10 hours fewer than the traditional 40-hour work week. It means those formerly part-time employees are now considered full-time employees. And, employers are mandated to provide the minimal level of government-defined health insurance coverage for them.

Again, that rule applies only for employers with 50 or more employees. And an employer will be required to pay a penalty per employee for each month it doesn't offer coverage.

The good news is that most farm businesses will be under the 50-worker count. That's because seasonal or temporary workers are exempted. It applies only to regular employees.

How it'll play out
The obscure provision recently emerged in regulations issued by the Internal Revenue Service for how employers must account for which workers are full-time, and which ones aren't. Under these standards, published in September, employers can choose a "look-back" period of between three and 12 months to measure if an employee has worked an average of 30 hours per week.

If an employee has worked 30 hours per week during this time, that person would count as a full-time employee for at least the next six months; regardless of how much they work, thus preventing employers from cutting hours to avoid the mandate. According to the report, an employer calculates the hours that the employee works during at least a three-month period, determining if the employee has worked 30 hours or more per week on average.

If that employee meets the 30-hour thresh-hold, he/she is counted as full-time for at least six months. If the employer has at least 50 total employees, health insurance must be provided or a fine will be payable.

Now, even bigger questions arise: Will current part-time employees be now considered as full-timers for the purposes of federal employment and unemployment statistics? And, will the rule change force employers to hire more people for less than 30-hour work weeks – far less than a "living wage"?

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  1. frustrated says:

    Obama is the worst President in history. This is just ONE thing that proves it.

  2. mary says:

    In response to: "How it'll play out The obscure provision recently emerged in regulations issued by the Internal Revenue Service for how employers must account for which workers are full-time, and which ones aren't. Under these standards, published in September, employers can choose a "look-back" period of between three and 12 months to measure if an employee has worked an average of 30 hours per week. If an employee has worked 30 hours per week during this time, that person would count as a full-time employee for at least the next six months; regardless of how much they work, thus preventing employers from cutting hours to avoid the mandate. According to the report, an employer calculates the hours that the employee works during at least a three-month period, determining if the employee has worked 30 hours or more per week on average. If that employee meets the 30-hour thresh-hold, he/she is counted as full-time for at least six months. If the employer has at least 50 total employees, health insurance must be provided or a fine will be payable." - This will just lead to more job loss (although unemployment figures, that way they are measured will not show this). Companies will cut jobs to stay in business- they have no choice but to either close down and everyone loses their job or cut some jobs. Wages will also lower as much as they can be lowered and companies will begin to only hire part-time workers and even fewer work hours total will be put in total than there were pre-obamacare. No good will come from this except at an extremely high expense. This “Obama-care” isn’t even set up the way that other countries have set up their healthcare systems so you really can’t compare us to any so called success stories. With such high costs to the citizens of our country outweigh the good and so this is not in our best interest. The only entities that do benefit from this, are the politicians that frame and leverage this for political gain. There expempt from this crap anyways. There isn’t a single member in the house or senate that would use Obama care only. Not even the president himself would. Economists don’t write this legislature individuals without a sophisticated enough background in economics do and they have no incentive to gain one. Even if economists did write the legislature, no one individual could possibly represent an entire country because they will never have as good of an understanding of what each person wants and how each person behaves as the very people they are representing do. This is why private entities and capitalism have alsways been more economically efficient than the government. Otherwise, for example, USPS would’ve put ups and fedex out of business long ago. Politics has always been a business and rarely about service. Unfortunately some refuse to see this or simply don’t see this.

  3. monica t says:

    The article states that the good news that most farm businesses will be under the 50 fte. How do you figure? In fact most will be over it! Our busness included, therefore we are shutting down this year. Cannot afford to provide health insurance to our employees. We are a seasonal comany and all our workers are seasonal however they work past the 120 day limit that makes them exempt. So they count towards the 50 fte. This is a small family company, we get our checks every week, no one was gettng rich. Unless something changes, we start shutting down in June.

  4. Ann says:

    I guess people are finally reading what is actually in the Obamacare bill. Surprize!

    • ted says:

      Remember now?--punklosi said we had to pass the bill to find out what was in it,,,,,,,,

  5. JAM says:

    Just another example of how "uneducated or gullible" voters are destroying this country one step at a time.

    • greg says:

      as Rush calls 'em--"low infomation voters"

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