Final answer:
If an employee receives subsidized coverage through a public exchange because the employer's plan is unaffordable or does not provide "minimum value," the employer would be subject to a penalty in 2016. Under the Affordable Care Act (ACA), employers with more than 50 employees must offer health insurance to their employees. If the employer's plan is considered unaffordable or the employee qualifies for subsidized coverage through a public exchange, the employer may face a penalty.
Step-by-step explanation:
If an employee receives subsidized coverage through a public exchange because the employer's plan is unaffordable or does not provide "minimum value," the employer would be subject to a penalty in 2016.
Under the Affordable Care Act (ACA), employers with more than 50 employees are required to offer health insurance to their employees. If the employer's plan is considered unaffordable, meaning the employee's share of the premiums is more than 9.5% of their household income, or the plan does not provide minimum value, the employee may be eligible for subsidized coverage through a public exchange.
In 2016, if an employer has at least one full-time employee receiving subsidized coverage through a public exchange due to the unaffordability or lack of minimum value of the employer's plan, the penalty would be $3,240 per subsidized employee. This penalty is calculated based on the number of full-time employees, excluding the first 30, and applies every month.