Analysis: Employers in States Not Expanding Medicaid Could Face Millions in Penalties Under ACA Mandate

Employers in the 25 states that have declined to expand Medicaid under the Affordable Care Act could face more than $1 billion in total fines annually beginning in 2015, when the law's employer mandate begins, according to a new Jackson Hewitt Tax Service report. Under the law, employers with at least 50 full-time workers must provide affordable health coverage or face a $2,000 fine per worker after the first 30 employees. If a worker eligible for a federal subsidy uses it to obtain coverage through an exchange, the employers faces a $3,000 penalty.

• "Employers Face Tax Hit in States With No Medicaid Expansion" (Mangan, CNBC, 1/22).