Without Medicaid expansion, employers in NC could face nearly $100 million in penalties

As many people know, businesses with more than 50 employees will need to offer affordable insurance to their workers or potentially pay a penalty. The fee is then used to offset some of the costs of providing those employees tax subsidies in the new health benefit exchanges. Many people do not realize, however, that businesses in states that do not expand Medicaid will face steeper penalties than companies in states that expand Medicaid.

The reason for this discrepancy is that a business only faces penalties when their employees get subsidies in the exchange. If a company does not offer affordable health insurance, but its employees qualify for Medicaid, the employer does not get penalized. Also, in states that do not expand Medicaid the subsidies will reach down to people earning 100 percent of federal poverty level. That means more people will get subsidies and more businesses will get penalized.

We’ve known all of this. Until now, however, no organization had quantified how much more in penalties employers might face. Now the tax services company Jackson Hewitt has released an analysis saying the amount of additional employer fees for North Carolina ranges between $65 million and $98 million.

This is just another reason why blocking Medicaid expansion and sending our federal funds to other states is a bad idea.

4 Comments

  1. Doug

    March 13, 2013 at 12:51 pm

    All the more reason for the Feds to pull them in to the Obamacare fold. It is truly egregious that the democrats in DC left all these people hanging out to dry wtih their legislation knowing that there was so little support for it at the state level. One other benefit if they go to cover these people…they get to hasten their march to a true socialist healthcare scheme. Truly surprising that fact evaded them…must have been due to that late night party around Christmas…..or the fact that they had not read the bill before approving it.

  2. Alex

    March 13, 2013 at 4:46 pm

    I wouldn’t put a lot of reliance on anything that Jackson Hewitt develops. They’ve been indicted and closed down in some states for false tax returns including North Carolina. They are just hoping they can profit on the mountains of paperwork required for Obamacare, and will soon be peddling healthcare eligibility reviews..

  3. BitterEXdemocrackkk

    March 14, 2013 at 6:54 am

    It’s time to CUT BACK medicaid and EBT to levels which will be affordable to the taxpayers…there is SO MUCH abuse in these entitlements, it’s time to pull everyone off the programs and begin again to register only those in real need. CUT CUT CUT CUT CUT CUT CUT CUT CUT CUT >>>>>>>>>

  4. gregflynn

    March 14, 2013 at 9:52 am

    Ah yes, let the infirm elderly and disabled fend for themselves.