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Health Insurance: Play or Pay?
National Summary
The Affordable 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 (ALEs) 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.
As of 2016, ALEs with 50 or more employees must contend with penalties under the play-or-pay provision.
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