AFCA for Employers

Voices for Health Fact Sheet on SHOP

SHOP: Find out if you qualify, what the health care tax credit might be worth to you, and compare plans.

You may qualify for a tax credit worth as much as 50% of your contribution to employee premiums when you buy coverage through the SHOP Marketplace and meet other eligibility requirements.

Originally, the component of the Affordable Care Act that would have required large businesses to provide health insurance for their employees was scheduled to take effect in January of 2014.  That date was changed to 2016.

Before the change was made, the NH Insurance Department summarized the requirements as follows:

For small businesses (50 or fewer full-time employees)

• The Essential Health Benefits will apply to the coverage you provide
beginning in 2014.
• There will be a special part of the Exchange, called the SHOP Exchange,
that you can use to offer coverage to your employees if you choose.
• You may take advantage of a tax credit for small employers to help pay
the cost of providing health insurance to employees. This tax credit applies
to employers with fewer than 25 full-time employees and average annual
wages under $50,000, where the employer pays at least 50% of the
premium.

For large employers, (more than 50 full-time employees):

    • Beginning in 2014 you must pay a penalty if any of your employees declines the health insurance you offer because it is unaffordable (employee’s share exceeds 9.5% of household income), and purchases individual coverage on the exchange using a premium tax credit.
    • As of 2018, if you provide very rich health insurance benefits, you may be subject to an excise tax equal to 40% of the value of the benefit, above a certain amount. This tax is also known as the Cadillac plan tax.
    • Beginning in 2014, employers with 50 or more full-time employees that do not offer health insurance will be assessed a penalty of $2,000 per employee if any of their employees receives a premium tax credit through the exchange.

The Affordable Care Act does not distinguish between public employers and
other types of employers.

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