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Employers who do not offer health care coverage in 2017 are expected to be hit with a $2,260 penalty for each full-time employee, up from $2,160, according to Mercer L.L.C. projections.
In addition, the penalty for offering coverage in which the share of the premium the employee pays for single coverage exceeds 9.5% of household income is projected to rise to $3,390 for each affected employee, up from $3,240 in 2016, Mercer reported Wednesday.
The higher penalties are tied to annual increases in health premiums.
The penalties — often known as the employer mandate — are a key part of the Patient Protection and Affordable Care Act and are intended to encourage employers to offer affordable coverage.
More than 20 million adult Americans have gained health insurance coverage due to the health care reform law, the U.S. Department of Health and Human Services said in a report released Thursday.