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Treasury Delays Group Reform Requirements for Arizona Companies

The U.S. Department of the Treasury has announced that it will postpone the mandatory employer and insurer reporting requirements until 2015. The postpone was due to feedback from employers about the difficulties in complying with Applicable Large Employer requirements under the Affordable Care Act (ObamaCare).

Without the reporting requirements, the Applicable Large Employer tax penalties will not be able to be implemented in a practical fashion. This provision of the law required that all businesses with firms with more than 50 employees to provide health care for these employees for face a penalty. These penalties, which were originally supposed to be effective on January 1, 2014, will thus be delayed until 2015.

This may result in the exchanges accepting an applicant’s family income claim that makes him or her eligible for the subsidy without further verification. “For income verification, for the first year of operations, we are providing Exchanges with temporarily expanded discretion to accept an attestation of projected annual household income without further verification.”  This, according to a spokesperson at the Centers for Medicare and Medicare Service.



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