On Tuesday, Judicial Watch, a conservative watchdog group, and an orthodontist in Florida filed a lawsuit against the Obama administration for its delay of the employer mandate, asserting that the president does not have the right to determine which provisions of the law he wishes to enforce.
The employer mandate requires employers with more than 50 employees to offer health insurance to their employers, or face penalties. On July 2, the Treasury Department issued a notice extending reporting requirements for the mandate to 2015.
The decision followed mounting pressure from employers who complained that there were too many unanswered questions for businesses to comfortably comply with the mandate provision set to go into effect on January 1.
Most believe that White House Senior Adviser Valerie Jarrett was primarily responsible for the decision. According to Jarrett’s blog post on the White House’s blog, the employer mandate has not only been delayed, but the administration will be drafting a simpler set of reporting rules.
“We have heard the concern that the reporting called for under the law about each worker’s access to and enrollment in health insurance requires new data collection systems and coordination,” Jarrett wrote. “We will convene employers, insurers, and experts to propose a smarter system and, in the interim, suspend reporting for 2014.”
But for those who have been busily working to prepare for the impending mandate, the surprise announcement proved to be more than a small inconvenience. Judicial Watch filed Tuesday's suit on behalf of Dr. Larry Kawa of South Florida, who asserts he spent a substantial amount of time and money preparing for the mandate, only to learn that the mandate was postponed until 2015.
The Daily Caller reported:
Kawa employs more than 70 people and under the Affordable Care Act is required to offer health insurance to his employees. Kawa said he has been providing "top shelf" insurance to his employees for 20 years, but spent considerable time and money to make sure his business was meeting the administrative requirements of the law.
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