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Coverage and/or Penalty

How will the health care reform law’s employer mandate, often called the “free-rider” penalty, affect my business?

In 2015, certain employers will either have to:

  1. offer all full-time employees (and their dependents) prescribed coverage; or
  2. potentially pay a penalty if any full-time employees “free-rides” on the system by receiving a premium tax credit and using it to purchase coverage in the exchange. 

The chart below will help you determine if your business has to offer coverage and/or pay a penalty. Download the chart as PDF.

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