Both the working poor and small businesses got some welcome, albeit temporary, news yesterday: the Treasury Department announced it is delaying what’s called the “employer mandate” under the Affordable Care Act until January of 2015.
That mandate requires companies with more than 50 full-time employees to offer health insurance or pay a $2,000 penalty. Most businesses with more than 50 employees already offer insurance, but smaller companies and startups often cannot afford the cost.
Even some supporters of Obamacare admit this mandate was a bad idea. As the Washington Post‘s Ezra Klein says, “it creates an incentive against hiring more full-time workers, and for cutting the hours of some of the full-time workers you already have. This was obvious from the day it was introduced.”