Several key reforms under the Affordable Care Act (ACA) measure the affordability of employer-sponsored health coverage. Effective for 2014, the affordability of an employer’s health plan may be assessed in the following three contexts:
- The shared responsibility penalty for large employers;
- The premium tax credit for low-income individuals to purchase health coverage through an ACA Exchange; and
- The tax penalty imposed on individuals who fail to obtain health insurance coverage, or the individual mandate.
Although all of these ACA mandates involve an affordability determination, the test for
affordability varies for each provision. This ACA Mandates Legislative Brief summarizes the different measures of affordability for these key ACA mandates.
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