Monday, January 31, 2011

Bill would repeal employer health care coverage mandate

WASHINGTON—The health care reform law mandate that requires employers to offer coverage to employees or pay a penalty would be repealed under legislation introduced by Sen. Orrin Hatch, R-Utah.

“The employer mandate would force businesses to let people go or raise the cost of doing business to such an extent that they don’t start hiring,” Sen. Hatch said in a statement last week. “Let’s repeal this job-crushing provision so businesses can (get) back in the business of hiring,” he said.

Sen. Hatch’s proposal, S. 20, has 23 co-sponsors, all Republicans.

Effective in 2014, the health care reform law will require employers with more than 50 employees to offer qualified health care coverage or pay an annual assessment of $2,000 for each employee working at least 30 hours a week. In computing the amount of the assessment, the first 30 employees are excluded.

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