Obamacare Pay or Play Penalties Increase for 2018

January 1, 2018. IRS announces increases to penalties for employers that don’t provide health insurance.

Employers that fail to provide the required health insurance to their employees under Obamacare will see a modest increase in fines for 2018. Obamacare requires employers with the equivalent of 50 or more full-time employees—those working 30 or more hours per week—to provide health insurance to 95% of their full-time employees.

The penalty for failing to provide insurance to 95% of full-time employees will increase from $2,260 in 2017 to $2,320 in 2018. The penalty is applied for each full-time employee that the employer has, minus the first 30 employees. At least one employee must receive government-subsidized health insurance coverage in order for the penalty to kick in.

The penalty for failing to provide coverage that meets minimum standards for affordability and coverage will increase from $3,390 in 2017 to $3,480 in 2018. The penalty is applied for each full-time employee who receives government-subsidized health insurance coverage.

Penalty amounts are adjusted each year for inflation.

Effective date: January 1, 2018