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Explore our coverage of government and politics.

Obama Decision Won't Affect Vermont Health Care Exchange

The Obama Administration's decision to delay employer mandate is not expected to affect Vermont’s new Health Care Exchange

Under the Affordable Care Act, businesses with more than 50 employees are required to offer health insurance starting in January or face an annual penalty of $2,000 per employee. Companies with fewer than 50 employees aren’t subject to penalties in the first year of the law.

In a surprise announcement, the Obama Administration has decided to delay the mandate on larger businesses until 2015.

Betsy Bishop is the president of the Vermont Chamber of Commerce.  She says a number of business groups complained about the vast amount of paperwork that was needed to comply with the mandate.

Bishop says the one year delay shows that the Obama Administration is listening to the concerns of the business community.

“So the delay will allow us to make sure that those reporting requirements to the federal government are done well,” said Bishop. “Without assessing penalties where they shouldn’t be assessed and also give employers time to plan for the future.”

Mark Larson is the commissioner of the Department of Vermont Health Access. He thinks delaying the mandate makes sense.

In Vermont this decision will make for a smoother transition for employers - DVHA Commissioner Mark Larson

“In Vermont this decision will make for a smoother transition for employers as they begin to provide affordable and accessible coverage to their employees,” said Larson. 

Starting in January, all businesses with fewer than 50 employees and all individuals will have to go through  the state Exchange to purchase health insurance.

Larson says the delay of the large employer mandate will have virtually no impact on the state Exchange, known as Vermont Health Connect, because the Exchange is initially designed to deal only with smaller companies.

“We remain on track to open Vermont Health Connect this October,” said Larson. “And the decision doesn’t really impact our process of providing a new way for individuals and small businesses to access coverage that meets the needs of themselves and their families.”

Chamber President Bishop is concerned about the state’s readiness to open the Exchange on time and she hopes the Shumlin Administration will put together some additional contingency plans.

“If the technology doesn’t work or if businesses need more time to sign up or individuals need more time to sign up I think the contingency planning could be better in the state,” said Bishop.

Commissioner Larson says he’s confident the Exchange will be ready to go on line on October first and he says there are plans in place in the unlikely event that there are some technical difficulties.

Bob Kinzel has been covering the Vermont Statehouse since 1981 — longer than any continuously serving member of the Legislature. With his wealth of institutional knowledge, he answers your questions on our series, "Ask Bob."
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