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?