Sen. Lamar Alexander (R-Tenn.) warned on Tuesday that delayed employer mandates outlined in the Affordable Care Act will take effect in 2014 and could stifle economic growth and lead to employer-issued health plans being canceled.
Alexander noted that some employers have begun to limit new hires and reduce work hours in anticipation of the healthcare law, which penalizes employers with more than 50 employees that don’t provide healthcare.
“Enforcement of burdensome mandates on businesses will mean fewer choices as health insurance plans offered by employers are outlawed under Obamacare, as well as higher costs for both Tennesseans and businesses that are trying to create jobs,” Alexander said.
Alexander said the ACA will force cancellation of health plans that are no longer in compliance with the law, which will force many Americans into the individual health plan market.
Approximately 82,000 Tennesseans are slated to lose their current health plans because of the ACA, Alexander added, and “tens of thousands more” could lose their plans or see rate increases.
The Department of Health and Human Services is expected to issue a final rule on the employer insurance mandate soon. The IRS will then determine how much documentation and paperwork employers will be required to provide.