Example 3
Lauren and David are married and employed by different businesses. Together, David and Lauren earn $48,000, slightly less than 350% of the federal poverty level (FPL). David works for Auto Pro, an auto supply manufacturer with 100 full-time employees that offers coverage. However, the portion of the premium that David would have to pay for individual coverage exceeds 9.5% of his household income, making the coverage “unaffordable” by the health care law’s definition. Of Auto Pro’s 100 full-time employees, 68 are in the same situation as David and elect to use the tax credit to purchase health care on the exchange. What will Auto Pro’s 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.