Explaining Health Care Reform: What Is An Employer “Pay-or-Play” Requirement?
To broaden coverage, some health reform proposals would require employers to offer coverage or pay to help finance subsidies for those without access to affordable coverage. These types of reforms are often referred to as “pay-or-play” policies.
The brief explains the concept and policy implications of employer pay-or-play proposals, which can vary in terms of the level of coverage required for compliance, the cost of the penalty to employers who do not offer, and whether small firms are exempt from the requirements.
It is part of a series of briefs providing an overview of key issues and concepts related to health reform.