These columns fought the Affordable Care Act from start to passage, and we’d now like to apologize to our readers. It turns out we weren’t nearly critical enough. The law’s implementation is turning into a fiasco for the ages, and this week’s version is the lawless White House decision to delay the law’s insurance mandate for businesses, though not for individuals.
The employer mandate is central to ObamaCare’s claim of providing universal coverage. Companies with 50 or more “employee equivalents” must pay a $2,000 penalty per full-time employee if they don’t provide government-approved health insurance. The provision was supposed to start in January, and delaying it is like Ford saying its electric car is ready to go, except the electric battery doesn’t work…
This is more than a typical government snafu. It relates directly to the design of the law, which was thoughtlessly written and rammed through Congress with instructions for the bureaucracy to figure it all out.
And, lo, over eight interim final rules, three final rules, 20 requests for comment, 21 proposed rules, one information collection request, two amendments to the interim final rules, six requests for information and one frequently-asked-questions document, the Administration has created an employer-mandate system that, for example, requires business to track and report every full-time employee’s hours of service on a monthly basis.
Meanwhile, the law stipulates that a full-time workweek for the purposes of the mandate is 30 hours, when general business practice is at least 35. The result is that businesses have been scrambling to insulate themselves from higher labor costs by hiring part-time workers, or splitting shifts, or in some industries like fast food even sharing workers. Small firms trying to expand while avoiding the 50-worker trigger have come to be known as 49ers.