An employee Declined Our Company Health Insurance - Will we receive a fine

An employee Declined Our Company Health Insurance - Will we receive a fine -

applicable large employers Healthcare reform mandates is offer? Health insurance coverage or pay a tax penalty. A common question we get from small business owners is, " Will I be fined if an employee refuses our company provided health insurance? "

The answer is no. Employers generally will not pay a fee if an employee refuses a company's health insurance coverage. In this article, we'll delve into the why and provide advice to understand the small health insurance options for the company in 2016.

Background on the need for health insurance

in under the affordable care Act (aka Obamacare or health reform), large employers are applicable mandate to provide full-time skilled workers and affordable health insurance coverage. If they do not, the employers may pay a tax penalty called Employer shared Responsibility Payment.

It sounds complicated (and yes, some calculations to understand FTEs and costs are quite complicated), but the concept is. pretty simple

Remember :.

• There is no requirement for small employers Small employers with fewer than 50 full-time equivalents (FTE) are not mandated to offer or report a health insurance coverage. In other words, there are no penalties for small employers.

• Large employers (with 50+ FTE) will only pay a fee if 1) they do not offer qualified coverage affordable and 2) if an employee buys subsidized coverage market

• For large employers, the penalty is based on what the employer offers - .. not on what the employee accepts or rejects

so, back to our original question ...

"Will I be fined if an employee refuses our company provided health insurance?"

No. In short, employers share responsibility fee applicable only to companies

1. are they major employers (50+ FTE), and
2. not offers affordable health insurance, and
3. Having employees who purchase coverage subsidized market.

simple, right? You can also request ...

"Can employees who refuse premium tax credits access coverage?"

In most cases the answer is no. If employees have access to a skilled affordable coverage from an employer (or the employer of a spouse), they are disqualified to receive premium tax credits for coverage of the market -. Even if an employee refuses the coverage of the company

Conclusion

employers of all sizes will not be fined if an employee refuses the company provided an insurance cover disease. It is becoming increasingly common, however, for employees of small businesses to decline the company provided insurance in favor of a more affordable market plan. As such, it is also increasingly common for small businesses to cancel their group health insurance policies and provide a formal repayment to individual employee health insurance policies.

Do you have any additional questions about the requirements for Medicare and sanctions? Leave a comment or question below and we'll help you answer!

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