An applicable large employer under the Affordable Care Act offers health coverage to substantially all of its full-time employees. The employer may still become liable for a shared-responsibility assessment in which of the following situations?

Why C is correct

Under the Affordable Care Act, an applicable large employer that offers coverage to substantially all full-time employees can still owe a shared-responsibility assessment when the coverage it offers is unaffordable or fails to provide minimum value and a full-time employee then receives a premium tax credit for subsidized marketplace coverage. The assessment is triggered only when an employee actually obtains subsidized marketplace coverage; shortcomings in the employer's plan alone, without an employee receiving a premium tax credit, are not enough.

Why the other options are wrong

• A) If the employee declines employer coverage and buys an individual policy entirely without federal premium assistance, no premium tax credit is paid and the assessment is not triggered.
• B) Part-time employees are not counted for the shared-responsibility offer obligation; only subsidized marketplace enrollment by a full-time employee can trigger the assessment.
• D) Whether an employer self-insures or buys insured group coverage from a licensed insurer has no bearing on shared-responsibility liability; the obligations apply to the employer either way.

Memory hook

No subsidy, no assessment: the employer penalty needs an employee's premium tax credit.