What does a company need to consider when deciding whether to “pay” the penalties or “play” by providing coverage to employees?
Minneapolis attorney Monica Kelley, specialist in advising employers on employee benefits packages, discusses if employers should pay or play under the Affordable Care Act.
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There are two major areas of consideration. One is maybe sort of your employee morale and what’s the culture of the company that you’re working in as to whether that’s something that employees are expecting and whether you want to provide it. So I don’t want to discount those considerations at all, they’re probably the most important ones. But if you get to the technical pieces of what you need to do to comply with the law some of the considerations to take into account are one that it’s not a violation of the law not to offer the coverage but it could result in a penalty. So then, it becomes a financial calculation to some extent. Now many employees do you have and how many employees do you have that might be likely to quality for the subsidy I think would be your major questions to ask. What’s the likelihood of them actually going out to the exchange and getting a subsidy?