Large Businesses

Large group employers who employ on average 50 or more full-time equivalent employees are required to provide affordable health coverage that meets the ACA’s minimum value requirement. If employers do not provide minimum value coverage they are subject to pay a tax penalty. This provision known as the employer shared responsibility provision or “Pay or Play” applies to for-profit, nonprofit, and government employers.

Effective Dates for Pay of Play
50-99 Employees: Compliance with this provision of the ACA has been delayed until 2016. Mid-sized businesses are required to report on number of employees and coverage in 2015, but have until 2016 before employer responsibility payments are due.
100+ Employees: Beginning January 1, 2015 large employers must offer coverage to 70% of their full-time employees in order to avoid penalties. In 2016 they must offer coverage to 95% of full-time employees.
Minimum Value Plans
In order to meet the requirements set forth by the ACA your group plan must meet a minimum value. The minimum value standard is defined as the plan paying for at least 60% of the covered costs under the plan. To ensure your group plan meets the minimum value use the U.S. Chamber of Commerce calculator.
Affordable Plans
The plan your company offers must also be affordable. In order to meet this requirement the employee contribution for single coverage must be less than 9.5% of their household income. If you offer more than one plan this standard must be met by the lowest cost option available to the employee.

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