What is the penalty under the Affordable Care Act (ACA) for an employer that does not offer health coverage?

Author: Alison D. Hurt, LeClairRyan

Under the ACA, an employer with 50 or more full-time employees and full-time equivalent employees (FTEs) may be subject to a penalty if it does not offer affordable, minimum value group health coverage to at least 95 percent of its full-time employees (and their dependents) and at least one full-time employee receives a subsidy, in the form of a premium tax credit, to purchase coverage through a health insurance exchange, also known as the Marketplace. The law calls for an annual no coverage penalty of $2,000 for all full-time employees employed by the employer, excluding the first 30 employees. However, the penalty, which is assessed monthly, is adjusted for inflation. The annual penalty amount is $2,160 for 2016 and $2,260 for 2017.