Question: Are empoyees covered by a group plan on the exchange eligible for subsidies?
Answer: No. Premium subsidies will only be available in the Covered California individual marketplace. This is an interesting question because it presents a dilemma for many small-business owners and their employees. Almost all small businesses will have some employees who will qualify for premium-subsidies. The way the ACA law reads, those employees cannot enroll in the Covered California individual marketplace and use their subsidies if their employer offers a group plan. This appears to force the employer into an all or nothing choice - offer a group plan to all eligible employees or don’t offer one at all.