In Notice 2013-45, the Treasury announced that the information reporting requirements and employer mandate penalties of the Affordable Care Act (ACA) would be delayed until 2015. The hearing, “Delay of the Employer Mandate”, focused on the Obama Administration’s decision to delay these provisions of the ACA.
Chairman Kevin Brady (R-TX) as well as several other Congressman expressed concern about the Administration not being prepared for the effective date of the ACA. They also questioned why the employer mandate was delayed, but the individual mandate was not.
However, Ranking Member Jim McDermott (D-WA) and other Congressman emphasized the benefits of the ACA for Americans and the need to reduce the number of uninsured individuals. They noted that the system needs to protect against adverse selection of benefits, which drives up health costs.
Mr. Iwry testified that the Administration was responding to the requests of employers who indicated that additional time was needed to implement the law. He indicated that the Treasury Department wanted to ensure that companies could comply effectively and efficiently. They wanted to allow time for companies to adapt their systems and conduct testing. He stated that the Treasury Department is confident that they have the legal authority to postpone the mandate under Internal Revenue Code section 7805(a). Mr. Iwry emphasized the importance of the individual mandate and indicated that the key insurance market reforms in the ACA don’t work without it.
More in-depth coverage is available here for ERIC members and trial members.
General information about the hearing is available here.
Mark Iwry’s testimony is available here.
Chairman Kevin Brady’s testimony is available here.
Ranking Member Jim McDermott’s testimony is available here.
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