Penalty for not offering employee health insurance expected to rise in 2017

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.

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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.