House Passes Bill Authorizing Employer Penalty Delay

July 24, 2013

pic-HealthCostsIn response to the administration’s announcement earlier this month to delay the employer penalty portion of the Affordable Care Act, the House has passed two bills which would codify the employer penalty delay as well as delay by one year the individual mandate.

The administration announced July 2 that it will not enforce the employer penalty or information reporting requirements under the Patient Protection and Affordable Care Act (PPACA) in 2014.  To read IRS Notice 2013-45 implementing this announcement, click here.  To read the various IRS rules relating to the PPACA, click here. To read more about the administration announcement regarding the one year deferral of the employer penalty, click here.

The House passed a bill (H.R. 2667), by a margin of 264-161, delaying the penalties imposed for companies that do not purchase health insurance in 2014.  Proponents of this legislation do not believe that the IRS has the authority to waive the penalties enacted by the PPACA without Congressional action changing the law.  To read the roll call vote on this bill, click here.

The House also passed a bill (H.R. 2668), by a margin of 251-174, that would delay the individual mandate penalties for one year. Proponents of this bill believe it is unfair to waive the employer penalties under the PPACA without also waiving the individual penalties.  To read the roll call vote on this bill, click here.

Neither of these two House bills is expected to pass the Senate.