Whether you agree or disagree with Governor Bentley’s decision not to expand Medicaid in Alabama, one of the end results may be a large tax on employers who employ more than 50 full-time employees. According to an article published on January 22, 2014 by CNBC, employers in the 25 states, including Alabama, that have not expanded Medicaid coverage are subject to taxes from $2,000- $3,000 per worker if their employer-offered health plan is found to be too expensive, and their workers buy private, subsidized insurance through Obamacare. The tax begins in 2015. This is in addition to whatever the increased employer mandated insurance costs may be, which were delayed from 2014 to 2015 by President Obama. For those states that have expanded Medicaid, the federal government will pay 100% of the increased costs until 2017, and this amount will be reduced by 5% a year.
Practice pointer. It is not too early for employers in Alabama with 50 or more full-time employees to begin planning for 2015 as it pertains to employer mandated health insurance coverage under Obamacare. Now is the time to begin consulting your legal counsel and/or accountant to make sure what the full costs of Obamacare may be and that there are no very costly mistakes.