Thursday, August 1, 2013

Obama Administration Delays Employer Mandate

The Obama Administration announced that the employer mandate portion of the new law will be delayed one year, so the first question on everyone's mind, how much is this going to cost? On Tuesday the Congressional Budget Office reported that the delay would cost nearly $12 billion.

Federal revenue is expected go down next year because employers who don’t offer qualifying coverage won’t have to pay a tax penalty. Federal spending will go up because CBO projects that a half million more people will be getting subsidized coverage through the law’s exchanges and its Medicaid expansion.

The real issue at hand right now, although hard to believe, is not the cost, but the fact that it will take one year. However, the impact of the delay will not be major, nor will it affect most people's health insurance. What do you think of the delay?

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