Study: Ohio employers could see $88 million in fines if Medicaid not expanded

A new analysis by tax preparer Jackson Hewitt concludes that employers in Ohio could pay as much as $88 million in federal fines if the state does not expand Medicaid (Source: “Refusal to Expand Medicaid May Cost Employers $1 Billion,” Bloomberg News, March 13, 2013).

A clause in the Affordable Care Act penalizes some employers when their workers aren’t able to obtain affordable medical coverage through the company. Employers can avoid those fees if their workers qualify for Medicaid as part of an expansion.

Without a Medicaid expansion, however, a “shared responsibility” payment of as much as $3,000 may be triggered for each employee who can’t get insurance through their company. According to the study, the fines on Ohio employers could range from $58 million to $88 million.