TBA Law Blog

Posted by: Brittany Sims on Feb 1, 2013

Under a new reform released this week by the U.S. Treasury Department, large employers will now face penalties for every employee who receives federally subsidized coverage. The Affordable Care Act provides federal subsidies to workers who aren't able to get "affordable" insurance through their employers, which is defined as less than 9.5 percent of household income. The rule applies that 9.5 percent to the cost of a worker's individual coverage however, not the cost to cover an entire family. Businesses with 50 or more full time workers must now “face decisions on the amount their employees contribute to their own health insurance,” John Graves said in an email to the Nashville Business Journal.