H.R. 2667: Authority for Mandate Delay Act

H.R. 2667

Authority for Mandate Delay Act

Date
July 17, 2013 (113th Congress, 1st Session)

Staff Contact
Kimberly Betz

Floor Situation

On July 17, 2013, the House will consider H.R. 2667, the Authority for Mandate Delay Act. H.R. 2667 was introduced on July 11, 2013 by Representative Tim Griffin (R-AR) and has 23 cosponsors.

Bill Summary

H.R. 2667 delays for one year the requirement that employers who employ more than 50 full time employees provide minimum essential healthcare coverage (as defined by Section 5000 A(f)(2)).  H.R. 2667 also delays the employer reporting requirements as set forth in Section 1514(a).

Background

On March 23, 2010, the Democratic House and Senate passed, and the President signed into law, the Patient Protection and Affordable Care Act. The legislation passed by a vote of 219-212 (see Roll Call   #165).  Later on March 25, 2010, the Democratic House and Senate passed, and the President signed into law, H.R. 4872, the Health Care and Education Reconciliation Act of 2010, which passed by a vote of 220-207 (see Roll Call  #194).[1]  Among other things, the law requires employers with 50 or more full time employees to provide approved health care coverage or pay a penalty tax.[2] Employers with 50 full time employees or more who fail to offer “affordable” coverage must pay a $3,000 penalty for every low-income employee that receives a subsidy through the Exchange, even if coverage is already provided.[3]  Employers who employ more than 50 full-time employees and don’t provide insurance coverage must pay a $2,000 tax penalty for every full time employee.[4]  Penalties are enforced through a reporting requirement administered by the Internal Revenue Service (IRS).[5]

On July 2, 2013, the Department of Treasury announced that it was delaying the reporting requirements. On its website, Assistant Secretary for Tax Policy Mark Mazur blogged that the Administration was providing an additional year for the mandatory and insurer reporting requirements to allow the government time to assess ways to simplify the reporting process and to allow businesses additional time to adjust health coverage.[6]



[1] The Health Care and Education Reconciliation Act of 2010 amended certain provisions of PPACA through the reconciliation process. 

[2] A full time employee is defined as those employees who are employed on average at least 30 hours of service per week.

(See Section 1513(a)).

[3] See id.

[4] See id. Up to 30 full time employees are exempt when calculating penalty.

[5] See Section 1514(a).

Cost

CBO and JCT estimate that enacting H.R. 2667 would not affect direct spending or revenues.