Affordable Care Act Penalties for Employers

PPACAThe United States Treasury Department has issued new regulations applying to large employers.  For those with more than 50 employees, the employer faces penalties for every employee who elects federally subsidized coverage, up to $3,000 annually but prorated per month.  Large employers will face decisions about how much employees will be contributing to their health insurance coverage.  The difference is that according to the Department, the 9.5% threshold under the Affordable Care Act applies to the individual’s coverage, not family coverage.  Under the ACA, an employee may opt for the federal subsidy if unable to get affordable insurance through the employer, and affordable is defined at this 9.5% threshold.  This ruling has the potential to save the federal government money if fewer people opt for coverage through insurance exchanges.  The effect on business, of course, would be the opposite.

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About Andrew (Andy) Wampler

For over a decade, I have provided legal services to businesses and individuals in Northeast Tennessee. I spend time litigating breaches of contract, medical malpractice, and commercial disputes and have worked on a number of transactions. I also advise businesses, working much of my time on healthcare and employment matters.

One response to “Affordable Care Act Penalties for Employers”

  1. troypiper6067 says :

    I wish that the government would get this information out to employers faster, there has been so much secrecy along with smoke and mirrors with regards to The Affordable Care Act.

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