White House Delays Part Of Affordable Care Act - WLNS TV 6 Lansing - Jackson | Your Local News Leader

White House Delays Part Of Affordable Care Act

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LANSING, Mich. (WLNS) - The White House has announced it's not mandatory for businesses to provide their employers with health insurance until 2016, giving owners more time to prepare for the new health care law to kick in. 

 Eventually, it will be illegal for medium-sized businesses (employees with 50-99 employees) not to offer their employees health insurance.

 

 

"It gives them a full 'nother year to decide whether they're going to offer coverage or pay the penalty," said Scott Lyon, with the Small Business Association of Michigan.

 

Lyon said that's a choice many businesses leaders will wrestle with. Just because the government requires it doesn't mean these businesses will provide coverage. For many businesses, paying the fine may actually be cheaper than providing coverage for all of their employees.

Locally, at the Volkswagen Dealership a part of Williams Autoworld, GM Jeff Williams, though he doesn't have to yet, already provides healthcare to his 66 employees.

"We don't want them to have to worry about if somebody gets sick or if somebody is sick how are we going to pay for it," said Williams.

In 2016, Williams could save roughly $100,000 a year if he chooses not to provide coverage, savings many business owners might not turn down.

 

Lyon said he worries the extra costs to businesses will force them to cut wages or stop hiring altogether. "If the Affordable Care Act and the employer mandate result in fewer jobs, that doesn't help anybody."

 

Originally, the employer mandate was set to kick in this past January 1, but was delayed.

Businesses with more than 100 workers will be required to provide health care coverage to 70 percent of their employees next year.

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