|
|

Health Insurance: Play or Pay?: What you need to know

The Affordable Care Act (ACA) does not require employers to provide healthcare insurance for their employees. However, it requires employers to share healthcare responsibility by either providing coverage or paying penalties. Under ACA’s employer mandate (also known as the “play-or-pay” provision), Applicable Large Employers (ALEs) must decide if they want to “play” by providing affordable, adequate coverage to substantially all of their full-time employees—or pay fines assessed under IRC Section 4980H.
As of 2016, ALEs with 50 or more employees must contend with penalties under the play-or-pay provision.
For a Limited Time receive a FREE HR Report on the "Critical HR Recordkeeping”.  This exclusive special report covers hiring records, employment relationships, termination records, litigation issues, electronic information issues, tips for better recordkeeping, and a list of legal requirements.  Download Now
Penalty for failure to play. If an ALE does not offer coverage and has at least one full-time employee who uses financial assistance to obtain healthcare coverage through an insurance exchange, the employer will be assessed a monthly fee of 1/12 of approximately $2,000 annually (the number is regularly adjusted for inflation) per each full-time employee (26 USC 4980H(a) and 26 CFR 54.4980H-4). This fee is referred to as an assessable payment and is $2,080 for 2015 and $2,160 for 2016.
The first 30 full-time employees are not counted when assessing the fee.
An ALE that offers coverage, but in any month has at least one full-time employee receiving financial assistance to pay for coverage because the employer coverage did not meet minimum value or affordability standards, will be assessed a monthly fee of 1/12 of approximately $3,000 annually (the number is regularly adjusted for inflation) for each employee receiving assistance, but not more than it would have had to pay had it not provided coverage at all (approximately $2,000 annually for each full-time employee; see above for the ...

>> Read more about Health Insurance: Play or Pay?

More on this topic:

Health Insurance: Play or Pay? Resources

There are currently no resources for this topic/state.

Health Insurance: Play or Pay? Products

Free Special Reports
Get Your FREE HR Management Special Report. Download Any One Of These FREE Special Reports, Instantly!
Featured Special Report
Claim Your Free Copy of Critical HR Recordkeeping

Record retention is complex and time consuming. However, in addition to complying with various federal and state laws, keeping good, well-organized records can be very helpful in documenting and supporting an organization’s employment actions.
Download Now!


This special report will discuss how you can ensure your records are in good order, and establish a record-retention policy.

Topics covered:
1. Hiring Records
2. Employment Relationships
3. Termination Records
4. Litigation Issues
5. Electronic Information Issues
6. Tips for Better Recordkeeping
7. A List of Legal Requirements

Make sure you have the information you need to know to keep your records in order.