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Employer Mandate Delay Hurts NFP Hospitals’ Credit Outlook
Health Leaders Media

Postponing the Affordable Care Act’s mandate for mid-sized employers for a second time is a “credit negative” for not-for-profit hospitals because it delays expanded coverage for previously uninsured patients and the corresponding reduction in bad debt and charity care, Moody’s Investor Services says.

The delay announced this month by the Obama administration gives companies with 50 to 99 employees until 2016 to offer insurance for their employees of face fines. The 2010 law originally required mid-sized employers to provide coverage beginning this year or face a $2,000 fine for each employee. The Obama administration last year delayed the employer mandate until 2015.