Extension issued for health law

U.S. gives employers more time to meet requirements for reporting data.

The Treasury Department on Monday gave employers an extension for crucial reporting requirements as it seeks to manage some of the most complicated parts of the federal healthcare law.

Employers had previously faced deadlines in February and March to report 2015 health insurance information to their employees and also to the Internal Revenue Service.

If they need more time, employers can now have until March 31 to get information to their workers and until June 30 in certain cases to get details to the IRS.

The Treasury Department said it acted after many employers complained that they might not be able to get the information processed in time. Companies that rely on outside vendors were running into a bottleneck.

“It’s a limited extension to make the system work as smoothly as possible,” Treasury senior advisor Mark Iwry said. The extension also applies to health insurance companies facing similar reporting requirements.

The information is needed to enforce the Affordable Care Act’s requirement that individuals carry health insurance, to administer its subsidies for premiums and to apply its requirement that larger employers offer coverage. Employers and insurers are filing the annual reports for the first time, as required by the health law.

President Obama’s healthcare overhaul, also known as Obamacare, joined health insurance and taxes, two of the most complicated areas for consumers and employers alike.

The law’s penalties for people who go without health insurance are administered through the income tax system, as are its subsidies to people who qualify for assistance with their premiums. Penalties for larger companies that fail to provide coverage are also assessed through taxes.

The requirement for employers with 50 or more workers to offer coverage or face fines has been delayed twice. It takes effect Jan. 1 for companies with 50 to 99 employees. Companies with 100 or more workers faced the requirement starting this year, after an initial postponement of a year.

Treasury officials said that Monday’s announcement does not involve any more delays of the law’s underlying requirements and just provides additional time for companies to file paperwork.