Obamacare leads to head explosions, at least after reading what Mr. Coyoteblog has to put up with.
Go read the whole thing, for this guy who runs campgrounds (I think) and hires mostly retired people on Medicare.
Here are 2 potential penalties and his situation.
The “A” penalty is for companies that do not offer any sort of health plan, no matter how crappy, to their full-time employees. The A penalty in this case is $2,000 per full-time employee, with the first 30** free (so with 60 FT employees and no health plan, the penalty is (60-30) x $2,000 = $60,000 a year.
The “B” penalty is for companies that avoid the “A” penalty. If a health plan is offered, but is not affordable (ie the employee monthly share of premiums is higher than a government-set floor) then the company gets penalized $3,000 for every full-time employee who both goes into an exchange and gets a plan with a government-subsidized premium. There is a cap on the “B” penalty that it can be no higher than if the “A” penalty was applied to the whole company.
But we had expected to avoid the A penalty by offering some sort of policy to our employees. ……………………………..
But it turns out that all the things that protect us from the B penalty make us almost un-insurable. First and foremost, insurers have a minimum participation rate they demand. They are not going to go through all the overhead costs of setting you up on their plan if no one is going to sign up.