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Ellmers grills Administration over Obamacare delay
Story Date: 7/19/2013
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Source: PRESS RELEASE, 7/18/13
This afternoon, a witness from the U.S. Treasury Department testified as to why the Obama administration is not prepared to implement Obamacare's employer mandate. The hearing of the Energy and Commerce Subcommittee on Oversight and Investigations uncovered how ill-prepared the administration has been for the implementation of this law, as seen in this exchange between Congresswoman Renee Ellmers (N.C.-2) and senior Obama administration advisor Mark Iwry.
Click Here to view the exchange.
Obamacare’s employer mandate requires that all businesses with more than 50 employees provide employer-sponsored insurance by 2014. Businesses not in compliance will face a $2,000 penalty for each employee beyond the 30th they hire in addition to the salary and benefits they must provide to their employees. As a result, the employer mandate serves as a disincentive for businesses to hire 50 or more employees, limiting economic growth and job creation. Employers could also pay a $3,000 penalty for each non-enrolled employee who is required to provide more than 9.5% of their W-2 wages to a company sponsored plan. Employers must also pay an initial fee of $65 per person with insurance.
The Congressional Budget Office (CBO) estimates that the employer mandate will cost businesses $140 billion in tax penalties from 2014 until 2023. This does not include the compliance costs businesses will be forced to pay.
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