TODAY   |  July 03, 2013

White House delays provision in health care bill

Employers will have an extra year to provide their workers with health insurance as the White House has announced it is delaying the employer mandate in the health reform law. NBC’s Peter Alexander reports.

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>> domestic initiative is facing a significant set back this morning. the administration unexpectedly announced a one year delay to part of the president's healthcare law. peter alexander is at the white house for us this morning. good morning to you.

>> good morning to you. you're right. this was an abrupt announcement that came late yesterday. a big sur prize and big set back for the single biggest legislative achievement. that's obamacare that's been met with resistance from republicans and businesses that insist it's too complicated and too costly. so the obama administration says it's listening to those businesses delaying what's called the employer mandate. the penalties for large employers that don't provide health insurance coverage to their workers have been delayed for a full year from january of 2014 to january of 2015 . the white house says that will let them cut out the red tape and simplify the process for the big companies.

>> there's politics here of course as announced on a quite holiday weekend. that date, i'm sure, many have noticed is after the midterm elections.

>> reporter: that's exactly right. republicans were almost gleeful when they heard the news. you'll remember house republicans that voted to repeal obamacare dozens of times now and this will delay it and they'll be fighting over the topic for the course of the next year. we heard from john boehner that says this is an acknowledgment from the white house that the healthcare overhaul is flawed. even the obama administration knows this is a train wreck that will only get worse. the white house has more complication as head of itself. they have to explain to others they can sign up for obamacare beginning three months from now.

>> peter alexander at the white house . thank you very much.