The law does not require employers to offer health insurance; however, beginning in 2014, employers with more than 50 full-time employees that do not offer coverage will have to pay a penalty of $2,000 per full-time equivalent employee for all full-time employees in excess of 30 if even one employee receives a federal government subsidy and purchases coverage in an exchange.
Employer Penalty for Unaffordable Coverage: If an employee opts out of an employer plan because coverage is “unaffordable”—that is, if the premium exceeds 9.5 percent of family income—the employer must pay a $3,000 penalty for each full-time employee who receives a government subsidy and purchases coverage through an exchange.
The government gets them coming and going.
Other than the constitutionl issues, what's the downside from a purely business perspective? I provide each of my New York employees at my expense with a high-deductible health insurance plan, with family coverage, at a cost of $13,000 per year per covered employee. I will save a huge amount of money when I terminate the plan next year, even after paying the penalties and splitting the remainder 50-50 with the effected employees after deducting the additional labor burden.
There is no rational basis for a business being responsible for an employees health insurance. Nada.
It would make far more sense for the employer to give the $2000 to the employee and have them be responsible for their own health care, and if they want the government version, then they can pay the gov’t that $2000.