A one-year delay does nothing to ease the burden of the employer mandate. As small business owners, health care experts, and employer groups have said – the mandate increases costs, shifts workers from full-time to part-time, reduces hiring and puts in jeopardy the health care that over 150 million Americans receive from their employer. On top of that, while some businesses may see temporary relief, the White House decision does nothing to address the most critical concern facing employers, employees and individuals – relief from higher health costs. Employers and academics agree that the Administration’s latest delay only underscores that the law is unworkable.
“The one year reprieve doesn’t do anything to address the problems of the mandate itself….The [mandate] does prevent me from growing my business from becoming even larger. As I told, you for 10 years I opened about one and a half locations per year, I wanted to grow forever, since 2008 I have really slowed that down.”
Sean Falk, Owner, WolFTeaM LLC, President, Nachogang LLC
“The employer mandate does not further the Affordable Care Act’s goal of expanding access to health insurance coverage. Indeed, the mandate effectively penalizes employers for hiring low-income Americans. Delaying the employer mandate by one year does not alter these long-term incentives, but it does complicate the implementation of ACA exchange subsidies and enforcement of the individual mandate.” Avik Roy, Senior Fellow, Manhattan Institute for Policy Research
“There are just so many unknowns right now….We’re right up against this deadline of trying to comply with the mandate….It’s a very complicated rule for business.”
Tom Boucher, the owner of Great New Hampshire Restaurants Inc.
“Delay of the employer mandate for one-year, possibly more, does not erase the inherent problems with the employer mandate. It only postpones addressing them.… The Administration’s one-year delay in the employer mandate somewhat improves a bad situation, despite raising such questions as – How will delay affect small business confidence that the mandate will be implemented rationally and with maximum efficiency? Will the Administration be ready in another year? Why was the Administration so ill-prepared in the first place? And is it legal to delay implementation of the employer mandate when the law specifically states that it will “shall apply to the months after December 31, 2013?”
William Dennis Jr., Senior Research Fellow, National Federation of Independent Business
“A business can only put out so much. It might help people, but it seems like it’s also going to hurt people. That’s what I’m totally afraid of,” said Faye McConnell, employee at Shanty Grille in Maryland. Owner Eric King went on to add that, “If we fall below the 50, fantastic. If we’re above, then we’ll have another year to figure out how to offset these costs.” But the major drawback, “No more expansion.”
“By forcing employers to offer government-prescribed health insurance, ABC members will no longer have the choice or flexibility to structure health care coverage options that meet the needs of their fluctuating workforce. The resulting increased costs will jeopardize the ability of ABC member companies to maintain affordable coverage options for their employees and will force some to drop coverage altogether…. The regulations implementing the employer mandate are complex, confusing and unclear. They create an environment of uncertainty in the construction industry that makes it difficult for firms to adequately plan for the future—ultimately stifling job creation.”
Association for Builders and Contractors