WASHINGTON In a major concession to business groups, the Obama administration Tuesday unexpectedly announced a one-year delay, until 2015, in a central requirement of the new health care law that medium and large companies provide coverage for their workers or face fines.
The so-called employer mandate requires companies with more than 50 full-time employees to provide affordable health insurance or face a penalty of $2,000 per employee.
The move sacrificed timely implementation of President Barack Obama's signature legislation but may help the administration politically by blunting a line of attack Republicans were planning to use in next year's congressional elections. The employer requirements are among the most complex parts of the health care law, which is designed to expand coverage for uninsured Americans.
"We have heard concerns about the complexity of the requirements and the need for more time to implement them effectively," Treasury Assistant Secretary Mark Mazur said in a blog post. "We have listened to your feedback and we are taking action."
Most business groups were jubilant.
"A pleasant surprise," said Randy Johnson, senior vice president of the U.S. Chamber of Commerce. There was no inkling in advance of the administration's action, he said.
The National Retail Federation, which has called for the regulations to be delayed, was equally appreciative.
"The one-year delay will provide employers and businesses more time to update their health care coverage without threat of arbitrary punishment," said Neil Trautwein, the federation's vice president and employee benefits policy counsel.
But others maintained that the provision will never be workable.
"Temporary relief is small consolation," said Amanda Austin, director of federal public policy with the National Federation of Independent Business, which last year lost the landmark Supreme Court case challenging the law's constitutionality.
The rest is here: