New Health Insurance for low-wage workers

Starting next year, firms with 50 or more full-time equivalent employees will need to offer the New Health Insurance to all their workers who average 30 or more hours a week.  Employers must not ask employees to contribute more than 9.5% of their income to the New Health Insurance premiums.  Otherwise, the employer could face penalties.  Employers don’t face any penalties if they offer New Health Insurance benefits and their employees don’t sign up.

On the other hand, many lower wage workers may reject enrollment in the New Health Insurance because they can’t afford the estimated monthly cost for his share of premium.  So, many won’t immediately sign on to the plan.  The employees might say they’re interested in employer coverage but they might want to have the cash than pay the employee portion of the premium.

Low-wage earners who can’t afford their employers’ plans may seek coverage through Medicaid, if they are eligible, or through an individual plan available through the marketplace.

The workers may forgo the New Health Insurance altogether and pay the small penalty, which could be their most affordable option.  They may be able to claim a hardship exemption from the penalty.

Most people will be able to get a break on costs through the Marketplace.

Read more about healthcare changes.