Ohio Insurance Laws And Regulations Practice Exam

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Under the Affordable Care Act, how is the annual penalty for a large employer that does not provide health insurance and owes an employer mandate penalty calculated?

$2000 multiplied by the number of part-time employees $2000 for every employee $2000 multiplied by the number of full-time employees minus 30 $1000 multiplied by the number of full-time employees minus 20

Correct Answer:

$2000 multiplied by the number of full-time employees minus 30

Explanation:

The annual penalty for a large employer under the Affordable Care Act is calculated by multiplying the number of full-time employees by $2000, but with a deduction of 30 employees. This means that the employer will not be penalized for the first 30 full-time employees. Option A is incorrect because it includes part-time employees, which are not counted towards the penalty calculation. Option B is incorrect because it does not take into account the deduction of 30 employees. Option D is incorrect because it uses a different formula with a deduction of 20 employees instead of 30.

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