Many professionals, specifically those who hold stake in the sweeping changes to employer benefits and health care, remain perplexed as the employer mandate associated with the Affordable Care Act continues to be delayed. Some have wondered what the implications might be if the mandate never took affect at all.

Recent analysis conducted by researchers at the Urban Institute in Washington suggests that doing away with the employer mandate within the Affordable Care Act would not have a great impact on the number of Americans with insurance. Although this might be the case, employers would still be responsible for ensuring they’re compliant.

Experts are quick to remind professionals, specifically those responsible for benefits, that the Affordable Care Act’s intricacies demand much more in terms of compliance than just health care compliance. Specifically, employers need to be aware of complying with changes in the market and take note of the requirements among other benefit mandates. Insurance brokers and agents can help companies with ensuring that they meet the proper requirements in a timely fashion.

As many employers already know, the penalties associated with non-compliant benefits as they relate to the new legislation are not to be taken lightly. Many believe that even if the employer mandate were to be eliminated, many Americans would still receive health care benefits from their employer. Research indicates that this assumption is accurate. In the analysis “Why Not Just Eliminate the Employer Mandate?,” the authors found that almost 70 percent of employed Americans now have employer-offered health care benefits.

If the employer mandate were to be done away with, the federal government would miss out on the monies they would have collected in penalties from non-compliant companies. In this case, the federal government would have to come up with other ways to generate the revenue lost by the change in plans.



Modern Business Associates is an HR company that focuses on payroll and HR outsourcing. We routinely work with clients on payment and employee benefit issues. As a Professional Payroll and HR outsource organization, our clients rely on us to help them effectively deal with these kinds of topics.