What are the penalties for not offering coverage or not offering coverage that meets healthcare reform requirements?

The penalty for not offering coverage is more significant than the penalty for not offering coverage that meets minimum requirements as described in What Large Employers Need to KnowHere is a look at both:

If you don’t offer coverage and at least one employee receives a premium tax credit or cost-sharing reductions through HealthSource RI, you pay $2,000 per full-time employee—excluding the first 30. HealthSource RI is our state’s health insurance marketplace (also called an exchange).

Example for an employer with 50 employees with one employee who receives a tax credit through Healthsource RI: $2,000 x 20 (50 employees – 30 employees)=$40,000

If you offer coverage that doesn’t meet minimum requirements and an employee receives a premium tax credit through HealthSource RI, you pay $3,000 for each full-time employee receiving a premium tax credit. The maximum penalty is $2,000 per full-time employee, excluding the first 30 (which is the same as the penalty for not offering coverage).

Example for an employer with 50 employees with one employee who receives a tax credit on the exchange: $3,000 x 1=$3,000

All penalties are paid to the IRS.

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