August 29 2013
This commentary appeared on The Health Care Blog on August 29, 2013.
Last month, the Obama Administration announced that it would delay enforcement of the employer mandate component of the Affordable Care Act (ACA) in part due to opposition from the business community. Opponents of the ACA cited the delay as evidence that the law was collapsing under its own weight, while ACA proponents downplayed the importance of the employer mandate in realizing the primary objective of the law — extending affordable coverage to millions of uninsured Americans.
Will delaying the employer mandate lead to the ACA's demise?
Using economic modeling, we have found that the primary goals of the ACA will not be impacted by the delay, but the delay may impact one of the law's key revenue sources designed to offset the costs of the coverage provisions.