Since last week’s blog post, the White House formally announced the delay of the Small Business Health Insurance Exchange (SHOP), as well as several other components of the Affordable Care Act (ACA).
As we mentioned last week, SHOP exchanges were set to be in place by January 1, 2014, with small employers offering open enrollment on October 1, 2013. With the lack of enthusiasm from states and the lack of plan options available, the decision to formally delay exchanges isn’t terribly shocking. What this means for many small businesses is that they will likely need to continue offering their current plan options for an additional year, or not offer coverage at all.
In addition, the White House announced another delay, this one affecting large businesses. However, this delay is more favorable toward employers as it excuses them from offering proof of coverage for 2014. Many of the reporting requirements have been criticized as being too burdensome for employers, so this will help relieve some concerns on how to comply with the new reporting requirements and healthcare mandates.
For more information on the delays and how they may affect you or your business, please visit Forbes.com.