How Is the Employer Mandate Fair?
I work for a company offering health insurance if employees want it. However, if we choose that insurance we lose $3.81/hour from our salary; which amounts to $660 a month. Since most are retired they do not use the insurance and some bought through the marketplace. Now supposedly by October 1 of this year Full Time Employees must use that coverage whether we want it or not. I can’t afford that. How on earth is this fair?
Answer
The mandate is meant to ensure that large employer provide coverage that cost no more than 9.56% of household income. Tax credits in the private market cap peoples insurance costs at 9.5% of household income. Generally, this is the amount that we have "agreed" that is the most any one person should pay for healthcare. Still 9.5%, even after deductions, is steep for any family! Not 100% how you are describing the arrangement with your employer? Does the $3.81 an hour translate to you not paying for coverage? If so this is a reasonable deal. If you still have to pay your half of your premium, then we would really have to dig to see what rules they are using to do this. It sounds pretty grey area if that is the case.
Learn more about the affordability of employer coverage.
Learn more about the employer mandate.
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Not a total answer. If we already HAVE insurance why are you forcing us to get rid of it and use the employer insurance???
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To clarify the answer. You don’t have to take employer coverage. The only caveat is that if you decline affordable employer-sponsored coverage then you can’t get Marketplace cost assistance. For those with access to employer-sponsored coverage the employer contribution is your “cost assistance”.
If you already have coverage that counts as minimum essential coverage, then you certainly don’t have to take employer coverage.
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my employer said they got a notice saying come Oct 1 all those working 30 hours a week or more, have to use their insurance even if we already have insurance. And they will be fined for each one who doesn’t