Stand up for the facts!

Our only agenda is to publish the truth so you can be an informed participant in democracy.
We need your help.

More Info

I would like to contribute

Angie Drobnic Holan
By Angie Drobnic Holan April 8, 2010
Back to Require large employers to contribute to a national health plan

Health care law targets large employers with penalties if they don't offer insurance

During the campaign, President Barack Obama said that large employers would have to offer their workers health insurance or contribute toward the costs of a national plan. This type of requirement is usually called an employer mandate.

But the final version of the health care law requires a contribution from employers, but it's not a straightforward mandate. Instead, the law states that large employers have to pay fines if any of their workers qualify for public subsidies.

The fine has many byzantine, technical details. Generally speaking though, the fine applies to employers with more than 50 employees if at least one full-time employee receives a public subsidy to buy insurance. The fee would be $2,000 for all employees, excluding the first 30 employees. The legislation lays out even more specifics for who is considered a full-time employee, reporting requirements for employers, and other special cases. The fines take effect in 2014.

The bottom line, though, is that large employers that do not offer health insurance will almost certainly have to pay a fine, because it's very likely that at least one of their workers would qualify for a subsidy, according to the Center on Budget and Policy Priorities, a left-leaning think tank that analyzed the issue.

The health care law has a complicated mechanism for ensuring that large employers contribute. But it does appear to fulfill the details of Obama's pledge. So we rate this Promise Kept.

Our Sources