I am an employer of around 120 employees therefore I HAVE to offer insurance to my employees. I am a MEDICAID paid employer under the Innovations Waiver of NC. The reimbursement rates are low so if lots of my employees would chose to take the insurance it could put me under. Luckily I only have had 2 people sign up for the past 2 years. Since the penalty is being withheld for people who do not have insurance have they decided about the future of employers still having to provide insurance?

I am so sorry for the hardship this has placed on your company. I am sorry to tell you that the employer penalties are still in place for not offering coverage. Here is some information:

Income Affordability Standard
This 9.5% income affordability standard has been adjusted upwards the past two years. The annual adjustment for 2016 was 9.66% and the adjustment for 2017 was 9.69%. However, for purposes of the employer shared responsibility mandate, the required contribution percentage will be decreased for 2018 to 9.56%.

This means that if an employee’s share of the premium (in 2018) for the lowest cost self-only option offered by the employer is more than 9.56% of his or her household income, the coverage is not considered affordable for that employee and the ALE member may be liable for a penalty if that employee obtains a premium tax credit for health coverage purchased through the marketplace.

Pay or Play Mandate
The original $2,000 amount associated with the section 4980H(a) penalty (failure to offer coverage to 95% of eligible full-time employees with MEC) and the original $3,000 amount associated with the section 4980H(b) penalty (failure to offer affordable coverage) have been adjusted each calendar year beginning after 2014.

In 2016, these numbers were $2,160 and $3,240 respectively and in 2017, these penalties are $2,260 and $3,390. The adjusted numbers to use in 2018 for a section 4980H(a) penalty amount is $2,320 and a section 4980H(b) penalty amount will be $3,480.

What is the takeaway for employers?
Unfortunately, employers may need to reduce employee contributions (or the relative share of plan cost reflected in employee contributions) in 2018 to maintain “affordable” coverage under the ACA.

https://www.irs.gov/affordable-care-act/employers/questions-and-answers-on-employer-shared-responsibility-provisions-under-the-affordable-care-act

Hope this helps.

February 2018