Employer Shared Responsibility
Pay or Play Resources

Allied's Pay or Play solutions include a set of plans and options that will meet any large employer's needs for coverage and affordability under the ACA Pay or Play mandate (Employer Shared Responsibility). Allied provides solutions for all employers' needs to meet the ACA mandate affordably and effectively.

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Background

The Affordable Care Act (ACA) Employer Shared Responsibility mandate (also referred to as Pay or Play) requires large employers (those with 50 or more full-time equivalent employees) to provide health benefit coverage that is affordable and meets minimum value standards.

Large employers who do not provide coverage face penalties for non-compliance.

The penalties include:

• Annual $2,000 per employee penalty (less the first 30) if the employer does not offer Minimum Essential Coverage (MEC) to 95% or more of its full-time employees and their dependents.
  
  
• Annual $3,000 per employee penalty for every full-time employee who receives a premium tax credit to help pay for coverage on a Marketplace because the employer coverage offered did not meet minimum value standards or it was not affordable (an affordable plan is one which does not cost more than 9.5% of the employee’s household income for single coverage). This penalty applies only to each employee receiving a tax credit through the Marketplace.

 
The Pay or Play mandate also created several reporting requirements for large employers which helps the government monitor employer health plans and determine employee eligibility for subsidies in the ACA health exchange marketplaces.

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Resources

Employer Shared Responsibility (ESR): Questions & Answers on Provisions Under the Affordable Care Act
Health Care Reform’s Employer Shared Responsibility Penalties: A Checklist for Employers

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Questions

For more information or questions, contact your health benefits agent.