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Jackson Hewitt Tax Service: NC employers will pay millions in tax penalties because NC didn’t expand Medicaid

SafariScreenSnapz001A recent report from the Jackson Hewitt Tax Service points out the substantial penalties large employers will pay next year in states that don’t expand Medicaid under the Affordable Care Act (like North Carolina).  This is because large employers who have low-income employees and don’t provide heath coverage incur a penalty for their employees who can’t get Medicaid but can buy coverage on the health exchange:

“States that do not expand Medicaid for adults leave their large employers exposed to higher employer “shared responsibility” tax penalties under the ACA.  The federal tax penalties to employers could total $1.03 billion to $1.55 billion each year in the 25 states that have not yet expanded Medicaid for adults.”

In NC, Jackson Hewitt calculates large employers will be penalized between $80 million and $100 million next year. These sorts of numbers have helped convince business interests from state chambers of commerce to associations of large employers to strongly support Medicaid expansion in many other states.  While major NC business groups have so far chosen not to support expansion, as these huge penalties become more clear to larger employers in our state, it may be that pressure builds to join other state chambers on record for Medicaid.

8 Comments


  1. LayintheSmakDown

    January 27, 2014 at 5:36 pm

    It would be interesting to see if their methodology takes into account the dollars they are saving by not providing what will likely be greatly inflated prices on a new Obamacare plan. My gut tells me the $100 million will be a much smaller penalty than covering the employees. Just one more negative effect of Obamacare….good to see it publicized here.

  2. Alan

    January 27, 2014 at 7:39 pm

    LSD, I guess you can add Jackson Hewitt Tax Services to the ever growing GOP enemies list.. “Greatly inflated prices in a new Obamacare plan”, yeah….however, back on planet earth…

  3. Frances Jenkins

    January 27, 2014 at 9:54 pm

    Adam should be arrested for should such a horrible presentation of the truth. This is not correct information

  4. Frances Jenkins

    January 27, 2014 at 9:54 pm

    Adam should be arrested for should such a horrible presentation of the truth. This is not correct information

  5. Alan

    January 27, 2014 at 10:16 pm

    Frances should be arrested “FOR SHOULD SUCH A HORRIBLE” use of the English language be encountered. Best NOT to post anything after a 1/2 bottle of Jack D…

  6. Jack

    January 28, 2014 at 9:15 am

    Is LayintheSmakDown’s gut now the voice of reason and source of facts for members of the GOP?

  7. Alan

    January 28, 2014 at 10:54 pm

    Jack,

    It’s either LSD’s gut, or Ted Cruz’s crystal balls…

  8. LayintheSmakDown

    January 29, 2014 at 8:25 am

    You are mistaken, I go not speak for the GOP. I only speak from traditional common sense and reason. Traits that are seriously lacking here in favor of ad hominem attacks.

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