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Employer Mandate Fact Sheet


Overview

Employers must offer health insurance that is affordable and provides minimum value to their full-time employees and their children up to age 26 or be subject to penalties. This is known as the employer mandate. It applies to employers with 50 or more full-time employees, or full-time equivalents, and will be phased in during 2015 and 2016 based on employer size. Employees who work 30 or more hours per week are considered full-time. This chart shows how the employer mandate will be phased in based on employer size:

Employer Size 2015 Plan Year 2016 Plan Year and Beyond
1-49 full-time employees Does not apply Does not apply
50-99 full-time employees* Does not apply Employer must offer coverage to 95% of full-time employees and dependents to age 26
100 or more full-time employees Employer must offer coverage to 70% of full-time employees and dependents to age 26 Employer must offer coverage to 95% of full-time employees and dependents to age 26

The employer mandate and employer penalties

Employers subject to the employer mandate are required to offer coverage that provides “minimum value” and is “affordable.” The chart below explains these requirements and the penalties that apply if they are not met:


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