Employers with 50+ employees must offer coverage

National Health Care Reform Legislation, requirements, Uncategorized — By on July 6, 2010 at 7:34 AM

An employer does not have to offer coverage, but if they do not offer qualified coverage and employ more than 50 full-time equivalent employees (with an exception for seasonal workers) and one or more employees receives a premium assistance tax credit to buy coverage through an exchange, the employer must pay a fine of $2000 per year times the number of full-time equivalent employees. When determining whether an employer has 50 employees, part-time employees must be taken into consideration in the number of full-time equivalent employees based on aggregate number of hours of service. An employer with more than 50 employees that does offer coverage but has at least one full-time employee receiving the premium assistance tax credit will pay the lesser of $3,000 for each of those employees receiving a tax credit or $2000 for each of their full-time employees total.An individual with family income up to 400% of FPL is eligible for a premium assistance tax credit if the actuarial value of the employer’s coverage is less than 60% or the employer requires the employee to contribute more than 9.5% of the employee’s family income toward the cost of coverage.

Source: NAHU

 

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