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?

Issues: