Obamacare Penalty For No Insurance Coverage
You’ve chosen “I still don’t want to offer health insurance to my employees (tell me about the penalties!)”. If this does not apply, please go back to the beginning of our Obamacare employer insurance guide or learn more about the employee tax penalties for not having health insurance.
You will be penalized when one of your qualifying full-time employees purchases insurance on an exchange. An exchange is an open market set up by the Patient Protection and Affordable Care Act (PPACA) to standardize health insurance coverage. Coverage from an exchange is subsidized by a federal tax credit, so your employees will have government incentives to choose this option. Your employees will pay an increasing annual penalty if they choose not to carry any health insurance.
How Much Will the Penalty Cost?
As an employer of 50 or more employees, when even one of your employees receives a premium tax credit or cost-sharing subsidy in an exchange, you will have to pay a penalty of $2,000 per year times the number of full-time employees minus 30. The Obamacare penalty for no insurance increases each year by the growth in insurance premiums.
Avoiding the Obamacare Penalty for No Insurance
Failing to match or exceed “Bronze level coverage” (60% of covered healthcare expenses in a typical population) equates to not offering adequate coverage. By offering the right insurance plan you can limit your costs while providing your employees with excellent coverage.
Contact Jackson Kahl Insurance for details: 800-524-5467.
Even if you choose to offer employee health insurance coverage options you may be exposed to tax time penalties and fines. Learn more about the Obamacare employer mandate.
Next Step: The insurance I offer will pay for at least 60% of covered health care expenses for a typical population.