Employer Mandate in Reform

Beginning January 1, 2014 employers must offer health insurance that employees can afford. Health care reform also says that the plans must give employees a certain amount of value-the plan must pay 60 percent of the cost of health services.

Employers with 50 or more full-time employees will be taxed if they don’t offer health insurance that covers minimum value. Employers would also be taxed if one or more employees can get federal premium assistance to buy health insurance through an exchange.According to Health and Human Services, a plan:

• Provides minimum value if it pays at least 60 percent of the cost of services
• Is affordable if a full-time employee does not have to pay more than 9.5 percent of household income for the premium

Health reform does not tax on the first 30 employees. There are no tax penalties for employers with less than 50 full-time employees, or the equivalent.

Federal premium assistance
Health and Human Services estimates that 19 million people who buy health insurance through a state exchange could be eligible for the federal premium assistance tax credit.

Learn more about the employer mandate

  Read our health care reform one year anniversary memo
Learn more about exchanges