Effective January 1, 2014, an employer with an average of at least 50 full time employees during the preceding calendar year (“FTEs”), which does not offer health insurance coverage, will be required to pay a fee of $2,000 per FTE if at least one of its FTEs receives a premium tax credit through an Exchange. The first 30 FTEs are excluded from the calculation of the assessed fee (for example, an employer with 51 FTEs would pay a fee of 21 x $2,000).
Effective January 1, 2014, an employer with an average of 50 FTEs during the preceding calendar year that does offer health insurance coverage but the coverage is considered unaffordable, would be assessed a fee of $3,000 for each FTE who receives a premium tax credit through an Exchange. The employer’s fee would be capped at an amount equal to $2,000 for each FTE.
The Health Reform Legislation specifically defines FTE, how the number of FTEs should be calculated, how the 30 FTE exclusion is applied and how related employers are impacted.
An employer is prohibited from discriminating or retaliating against any employee for receiving premium tax credit assistance or providing information to the Secretary of the Department of Health and Human Services (“HHS”) relating to employer violations under the Health Reform Legislation.