Employer Penalties Do Not Drive Coverage

Brief

Employer Penalties Do Not Drive Coverage

On July 2nd, the Obama administration announced a 1-year delay in the implementation of employer penalties associated with large employers (50 or more workers) who do not offer affordable coverage to their full-time workers (30 or more hours per week). Our prior analyses show these penalties are not the driving force behind the ACA's coverage expansions. Nor are the penalties a significant source of federal revenue. Contrary to some initial reactions, the employer responsibility requirement is not a critical factor in meeting the goals of the law.

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