Example 2
John’s engineering company, Micro Widgets, has 51 full-time employees. John provides his employees one health plan, a health maintenance organization (HMO). The actuarial value of the HMO is 50%, meaning that the plan pays half the cost of covered benefits. Micro Widgets’ plan is below the health care law’s 60% actuarial value threshold, and fails to meet the minimum value. What will the penalty be?
The materials on this website have been developed for educational purposes only. We urge you to consult with an attorney or benefit consultant to understand your legal obligations under the law. In many instances, the rules have yet to be written. Experts are continuing to debate how various provisions of the law will be implemented and enforced. Many basic elements may change and there are numerous exceptions. Please contact an attorney or benefit consultant to verify how the law will affect your specific company, benefit offering, and scenario.