How can the IRS and the Obama administration simply waive a key provision of the Patient Protection and Affordable Care Act passed by Congress? Section 1513(d) of the law unequivocally states that the employer mandate “shall apply to months beginning after December 31, 2013.” Could the administration's decision to delay the penalty on employers of more than 50 full-time employees for not providing coverage to their workers be challenged in court? Ironically, Darrell Issa (R-Cal.), chairman of the House Oversight and Government Reform Committee, who strongly opposes the ACA, has hinted at a legal challenge, calling the delay “extra legal.”
Republican presidential candidate Mitt Romney was ridiculed last year when he promised that on his first day in office he would issue an executive order exempting the states from all Obamacare requirements. Critics noted that was not something a president has the constitutional authority to do. Now President Barack Obama's administration has done something similar, though far more limited.
Of course, it isn't the first time the Obama administration has delayed ACA requirements. As Tim Jost, a Washington & Lee University law professor, points out, the administration previously delayed implementation of provisions barring employers from offering Cadillac coverage to executives and skimpy coverage to everyone else. It also delayed implementation of the employee-choice feature of the small business health insurance exchanges until 2015.