Ohio Insurance Laws and Regulations Practice Exam

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Study for the Ohio Insurance Laws and Regulations Exam. Prepare with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

Practice this question and more.

Under the Affordable Care Act, how is the annual penalty for a large employer that does not provide health insurance and owes an employer mandate penalty calculated?

$2000 multiplied by the number of part-time employees
$2000 for every employee
$2000 multiplied by the number of full-time employees minus 30
$1000 multiplied by the number of full-time employees minus 20

The correct answer is: $2000 multiplied by the number of full-time employees minus 30

The annual penalty for a large employer under the Affordable Care Act is calculated by multiplying the number of full-time employees by $2000, but with a deduction of 30 employees. This means that the employer will not be penalized for the first 30 full-time employees. Option A is incorrect because it includes part-time employees, which are not counted towards the penalty calculation. Option B is incorrect because it does not take into account the deduction of 30 employees. Option D is incorrect because it uses a different formula with a deduction of 20 employees instead of 30.