State RegulationsTX specificDifficulty 2/5
Which statement best describes the employer shared responsibility requirement under the federal health care reform law?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under the employer responsibility provisions in ACA Sections 1511-1515, an applicable large employer must offer minimum essential coverage that is affordable and provides minimum value to substantially all of its full-time employees and their dependents, or make a shared responsibility payment. The rule is a pay-or-play choice for large employers: it does not require coverage for part-time employees, and it does not oblige an employer to fund an employee's Marketplace coverage.
Why the other options are wrong
- A) The shared responsibility requirement reaches full-time employees of applicable large employers; part-time employees are not covered by the offer obligation.
- C) An employer is not required to fund Marketplace premiums; the obligations are to offer qualifying coverage or to make a payment.
- D) Nothing in ACA Sections 1511-1515 bars an employer from offering coverage to employees who could qualify for a credit; doing so simply ends credit eligibility for those months.
Memory hook
Offer full-timers affordable minimum value, or pay the penalty.