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Covered California Q&A

Covered California and Obamacare related questions from consumers, employers and agents are answered by Phil Daigle with the best information available at the time. Archived entries may no longer be accurate as the Covered California and Obamacare knowledge-base is evolving quickly. TO REQUEST A PERSONAL RESPONSE INCLUDE EMAIL ADDRESS.

Uneven Employer Contribution Amounts?

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Question: If the small (group) employer elects to make a defined benefit contribution for each employee could this not cause an older and lower compensated employee to have to contribute more than 9.5% of his income to cover his family? Would the employer have to make different contributions based on each employee age and income?

Answer: Yes, an employer can make different contribution amounts for different ages of employees. You can also make different contributions for different classes of employees, for example: hourly and salaried, management and non-management, and length of service.

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