July 3, 2013

Obama delays major requirement of new health law

The Associated Press

(Continued from page 1)

Stephanie Place, Maria Cazho
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In a major concession to business groups, the Obama administration Tuesday unexpectedly announced a one-year delay, until after the 2014 elections, in a central requirement of the new health care law that many companies provide coverage for their workers or face fines.

2013 AP File Photo

The delay in the employer requirement does not affect a provision in the law that requires individuals to carry health insurance starting next year or face fines. That so-called individual mandate was challenged all the way to the Supreme Court, which ruled last year that the individual requirement was constitutional since the penalty would be collected by the Internal Revenue Service and amounted to a tax.

Tuesday's action could provide cover for Democratic candidates in next year's congressional elections.

The move undercuts Republican efforts to make the overhaul and the costs associated with new requirements a major issue in congressional races. Democrats are defending 21 Senate seats to the Republicans' 14, and the GOP already had begun to excoriate Senate Democrats who had voted for the health law in 2009.

Senior White House adviser Valerie Jarrett cast the decision as part of an effort to simplify data reporting requirements.

She said since enforcing the coverage mandate depends on businesses reporting about their workers' access to insurance, the administration decided to postpone the reporting requirement, and with it, the mandate to provide coverage.

"We have and will continue to make changes as needed," Jarrett wrote in a White House blog post. "In our ongoing discussions with businesses we have heard that you need the time to get this right. We are listening."

Republicans called it a validation of their belief that the law is unworkable and should be repealed.

"The president's health care law is already raising costs and costing jobs. This announcement means even the Obama administration knows the 'train wreck' will only get worse," House Speaker John Boehner, R-Ohio, said in an email. "This is a clear acknowledgment that the law is unworkable, and it underscores the need to repeal the law and replace it with effective, patient-centered reforms."

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