Health Insurance: Play or Pay?
Care Act (ACA) does not require employers to provide healthcare
insurance for their employees. However, it requires employers to share
healthcare responsibility by either providing coverage or paying penalties.
Under ACA’s employer mandate (also known as the “play-or-pay” provision),
applicable large employers must decide if they want to “play” by providing
affordable, adequate coverage to substantially all of their full-time
employees—or pay fines assessed under IRC Section 4980H.
The play-or-pay provision
was originally supposed to become effective January 1, 2014, but the
Obama administration subsequently delayed implementation until 2015.
Applicable large employers with 100 or more employees must contend
with penalties under the play-or-pay provision as of 2015. However,
applicable large employers with 50 to 99 employees that meet certain
requirements and provide appropriate certification do not face any
penalties under the provision until 2016.
Summary for [Your State]