The PPACA imposes taxes on employers who choose not to provide health insurance benefits or who choose to offer highly expensive health insurance plans. Let’s assume that a company has 500 workers. Calculate the costs of the following scenarios.
- The company chooses not to provide health insurance. How much will the penalty be based on the formula presented in this chapter?
- The company prices health insurance for its workforce, and determines that the annual cost is $2,500,000. Based on your answer to question 10-9, how much money would it save by not offering health insurance?
- The company is considering the purchase of a high-priced health insurance option. The cost is equal to $16,000 per employee for individual coverage and $30,000 per employee for family coverage. Half of the employees subscribe to individual coverage. Based on the guidelines presented in this chapter, calculate the Cadillac tax.