The Supreme Court ruled in King v. Burwell that subsidies used to purchase health insurance in the 36 states on the federally facilitated marketplace are legal, thus avoiding the “death spiral” so often referred to by Congress. What does this ruling mean for employers? Business as usual – the government’s Healthcare Marketplace is the new normal and the legal path has been cleared for employers to focus on compliance initiatives, including: 

1. Employer shared responsibility – If large employers want to avoid an Internal Revenue Code §4980H(a) penalty for failure to offer health insurance to employees, they must make sure that they offer coverage to at least 70% of their full-time employees (“FTEs”) (working an average of 30 or more hours per week) in 2015 – and 95% of FTEs in 2016 and beyond. In addition, employers must ensure that such coverage is “affordable” and meets the minimum value criteria for each FTE to avoid lesser penalties under Internal Revenue Code §4980H(b). 

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