PRESS RELEASE: True Purpose of Postponing the Employer Mandate

New York, NY (July 3, 2013)–The Obama administration suspended the employer mandate to divert the disaster of severe under enrollment in the exchanges this October. “The most likely purpose of suspending the employer mandate is not to provide flexibility to employers but rather to compel a reluctant population to enroll in the health exchanges,” explains Betsy McCaughey, former Lt. Governor of New York and author of Beating Obamacare.

Delaying the employer mandate on the industries that currently don’t offer compliant insurance — such a retail and hospitality industries –will mean that healthy employed people who otherwise would get coverage at work under the employer mandate will have to enroll on the exchanges instead or pay the penalty.

In short, the result of suspending the employer mandate BUT NOT THE INDIVIDUAL MANDATE, is to fill up the exchanges.  Without this change, the administration likely saw it was heading toward a disaster, with a small number of sick people enrolling in the exchanges, forcing premiums even higher than the double digit increases already announced.

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