Obama Administration Delays Key Provision in Health Law

WI Web Staff | 7/2/2013, 6:30 p.m.

The Obama administration will delay until 2015 a key provision in the federal health care law that would require companies with more than 50 employees to provide health insurance, a shocking decision in the oft-contentious battle.

Employers needed "more time to comply with the new rules," White House adviser Valerie Jarrett said Tuesday in a post on the White House's blog.

The mandate requires businesses with more than 50 employees to offer adequate health coverage or be severely penalized.

Now, there will be no penalties the first year on businesses without coverage for employees. Small businesses, with fewer than 50 workers, were already exempt from that rule.

The move does not affect the individual mandate that most Americans get insurance.