Does an employer have to pay for health coverage in order to avoid a penalty under the Affordable Care Act (ACA)?

Author: Brian G. Muse, LeClairRyan

No. The ACA does not require an employer to pay the cost of employee health coverage in order to avoid a penalty.

However, a large employer that does not offer coverage will be required to pay a penalty if any full-time employee is eligible for and purchases subsidized coverage through an exchange. The coverage offered by the employer must meet the minimum value and affordability requirements established under the ACA.