What happens if a Large Business doesn't offer health insurance to it's employees?

You are subject to penalties starting in 2015.

What is the penalty?

If you are a Large Business (50 or more employees), then you are required to offer health insurance or pay a penalty in 2015. The penalty for not offering health insurance is $2,000 per employee per year. You get a waiver for the first 30 employees.

So, for example, let's say that your business employees 72 full-time equivalents and you don't offer qualified health insurance.

You get a waiver on the first 30, so that leaves 42 employees to pay penalty for.
42 x $2,000 = $84,000 annual penalty.

Is it better to pay or play?

Many Large Businesses are asking if they should pay or play? Is it better to not offer health insurance and pay the annual penalty or is it better offer affordable health insurance to their employees?

Our Pay or Play Calculator will show you, down to the penny, the cost for both options. And we'll advise you on the pros and cons of each.

What if my plan is not affordable?

A Large Business plan has to pass an Affordability Test for each and every employee. What the employee pays toward the employee-only premium cannot exceed 9.5% of his/her Modified Adjusted Gross Income.

If your plan is unaffordable, and at least one employee tries to use a tax subsidy to get lower costs on Individual or Family Insurance plans, then the penalty is $3,000 per employee per year.

For example, if there was a business with 72 employees:

72 employees x $3,000 = $216,000 annual penalty