The majority of California employees get their coverage from their employers, and many of them recently received letters from Covered California (the Exchange) stating their employees received subsidies, and therefore the employer owes ACA penalties. These notices contain demand for payment, ranging from $2,000 – $3,000 per employee. This can add up quickly!
The good news is that if you offer health coverage, even if an employee waived coverage, you are prepared to avoid these penalties. Employers respond to these letters indicating they offered coverage that met ACA guidelines, thereby making subsidies unavailable to their employees, and no penalty is due. Whew! The bad news is that employees who received subsidies in error will have to repay those amounts.
Ruling your world is about understanding all of your choices and making the right ones for your business. If you’re a small business and want to review your options beyond the exchanges and make sure you have a good response to penalty notices, my team of employee benefits and health insurance experts can help! We’ll explain this stuff and how it applies to your company’s circumstances and find the right plans for you and your employees.