Monday, July 15, 2013

Could the Employer Mandate Delay Help the Success of the ACA?

As the House gets set to vote this week to enact the employer mandate delay, several new sources report that the delay could help the ACA by enlarging to pool of uninsured Americans that, because they would not be offered coverage by their employer, may turn to the state's exchanges.


The ACA's success is largely dependent on how many people purchase coverage through a state exchange. However on the docket for the House this week, in addition to the employer mandate delay, is a similar bill to delay the individual health insurance mandate.

Both bills will require a majority vote in the Democrat-run Senate.  While Senate Democrats are likely to back the Obama Administration in delaying the employer mandate, it is highly unlikely that the Senate will vote to delay the individual mandate.

In addition to these two delays, three of the country's largest unions are urging Congress to changes major portions of the ACA due to concerns that it will "destroy the foundation of the 40-hour work week that is the backbone of the American middle class."  This concern is likely due to the fear (and now, in some cases, the reality) that employers will reduce workers hours to part-time status in order to avoid providing employee health insurance.

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