Merrily Orsini's Thought Leadership

Employer Mandate Component of Affordable Care Act Amended

Home Care Agencies Get Respite from ACA

The Affordable Care Act’s Employer Mandate Amended

A crucial decision that affects home care agencies was made yesterday as the Obama Administration postponed some crucial parts of the Affordable Care Act relating to the Employer Mandate .

The IRS issued a Final Rule February 10, 2014, changing the implementation of the employer mandate provisions of the Affordable Care Act to ensure a gradual phase-in of the employer mandate.  For 2015, the rule states that the employer responsibility provision will generally apply to larger firms with 100 or more full-time employees. In 2016 the mandate will apply to  employers with 50 or more full-time employees.

A Fact Sheet issued by the US Treasury Department gives details on implementing the employer shared responsibility under the Affordable  Care Act (ACA) for 2015.

Another bright spot for home care agencies was introduced to the House of Representatives on February 4th defining a full-time employee as working 40 hours instead of the 30 hours that was originally proposed as a component of the ACA.

According to a release by the Home Care Association of America, “The bill would repeal the 30-hour threshold for classification as a full-time employee for purposes of the employer mandate in the Patient Protection and Affordable Care Act and replace it with 40-hours.  The bill has the support of 201 members of Congress and was passed out of Committee on a vote of 23-14.”

Check the Federal Register for updates.

Both of these actions are very good news for home care and home health agencies.