Federal budget bill repeals ACA automatic enrollment mandate
Posted November 5, 2015
On November 2, President Barack Obama signed the Bipartisan Budget Act of 2015 (H.R. 1314) into law. The bill may impact certain employers because it repeals a section of the Affordable Care Act (ACA) and increases the premiums paid to the Pension Benefits Guaranty Corporation (PBGC).
The repealed section of the ACA is the automatic enrollment mandate, which stated that any employer that has more than 200 full-time employees must automatically enroll new full-time employees in one of the employer’s health benefits plans, and continue the enrollment of current employees in a health benefits plan offered through the employer.
The bill also changes payments to single-employer pension plans. The changes, according to a report by the Society for Human Resource Management (SHRM) include:
- Flat-rate premiums increasing by 22 percent from 2016 levels.
- Variable rates increasing by 24 percent from 2016 levels.
- Annual due date for 2025 premiums is now September 15 instead of October 15.
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