visit us on linkedin LinkedIn twitter Twitter facebook Facebook youtube

Health Care Calculator

Health Mandate Cost Calculator1


Enter the total number of hours worked by all of your part-time workers for one month. The calculator determines the number of full time equivalents [total part-time hours/month divided by 120] which in turn is added to the number of full-time employees to determine whether you meet the 50-employee penalty threshold.

Results

Your total number of full-time employee equivalents3 is 0.
Exempt

You do not have enough (50 required) full-time or full-time equivalent employees to be subject to the penalty mandates. Please note that the penalty calculation is made on a month-to-month basis. Your actual status could change in a given month in response to a surge in part-time hours or as your business grows. You should review your health plans and changing obligations under the law with competent benefit advisers. The NRF provides this Health Mandate Calculator as a service to its members and the public to provide general information and it is not nor is it intended to provide legal advice.

New coverage options are scheduled to be available as of 2014. NRF believes that PPACA did not do enough to reduce the cost of medical care and coverage and that insurance premiums will continue to increase. A majority (57.1%) of respondents to NRF's May 2010 health care survey predict premium rate increases between 6 to 10% in 2011.

Results

If you do not provide coverage to full-time employees, and at least one receives an Exchange Subsidy4, then your total annual penalty owed to the Federal Government will be $zero5.

If you do offer qualified coverage to full-time employees, but one or more receives an Exchange Subsidy4, then your penalty for each subsidy-recipient employee will be $3,0006.

Listed below are possible penalties based on the information you have provided.

Subsidy Recipients 5 10 25 50 75
% of
full time Workforce
5% 10% 25% 50% 75%
Penalty $0 $0 $0 $0 $0
1 From the Patient Protection and Affordable Care Act of 2010 (PPACA).
2 Full-time employees work 30 hours or more per week on monthly average.
3 No penalty is paid on part-time employees or full-time employee equivalents.
4 If total employee cost exceeds 9.5% of employee's family income,
  then the employee is eligible for subsidized coverage in the new
  state-based Exchange purchasing group.
5 The first 30 full-time employees are exempt from the mandate penalty.
6 The penalty amount is the lesser of the actual penalty or $2,000 times all
  full-time employees minus the first 30.

Health Mandate Cost Calculator

Health Care Reform (Patient Protection and Affordable Care Act of 2010 – PPACA) is now the law of the land. One key issue affecting all employers – but especially the retail and restaurant industries – is the employer mandate, seen here as employer mandate penalties for failure to offer or an offer of unaffordable coverage.


These financial penalties apply to employers with more than 50 full-time or full-time-equivalent employees who either do not offer coverage to full time employees (and one full-time employee receives a tax subsidy) or offers coverage to full-time employees and the cost exceeds a threshold of a full-time employee’s income and the employee receives a tax subsidy. The employer mandate penalties begin in 2014.


Sounds complicated?
The National Retail Federation has created a special Health Mandate Cost Calculator to help you better understand your potential mandate penalty exposure. Your actual status could change in a given month in response to a surge in part-time hours or as your business grows. You should review your health plans and changing obligations under the law with competent benefit advisers. NRF provides this Health Mandate Cost Calculator as a service to its members and the public to provide general information and it is not nor is it intended to provide legal advice.


Follow the “Let's Start” link to review your potential mandate penalty liabilities.

Sign Up To Get Involved

Sign up to receive email updates about NRF’s campaign to promote retail jobs, innovation and consumer value.