50-99 Mid-size employer 1 year delay in penalty exposure

[Flyboyjohn]

One of the requirements to qualify for the 50-99 mid-size penalty delay to 2016 is maintaining the same level of coverage that was offered on 2/9/2014.

What if the mid-size employer was not offering any coverage on 2/9/2014, can they still qualify for the relief or did they have to be offering "something" on the magic date?

[Brigid Anderson]

The language of the preamble describing this transition relief seems to envision employers that did not offer coverage before: "Except as otherwise provided in this paragraph (3), during the coverage maintenance period the employer does not eliminate or materially reduce the health coverage, if any, it offered as of February 9, 2014." (emphasis added). The preamble also says this: "The Treasury Department and the IRS understand that application of section 4980H will involve changes for applicable large employers that did not previously offer coverage, or that did not offer affordable, minimum value coverage. A large percentage of those employers are in the smaller size range, such as those with fewer than 100 full-time employees (including FTEs)." (emphasis added)