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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.

Group Coverage Unaffordable for Plan Year

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Question: Let’s say a group currently offers coverage and the renewal date is September 1. Let’s also say that the coverage they offer does not currently meet the affordability test but that they plan to make changes so that it will meet the affordability test come 9/1/14. Are the employees of that group eligible to receive a subsidy on the exchange from 1/1/14 through 8/31/14?

Answer: Yes. The employees of your hypothetical group can be eligible for advance premium tax credits in the individual exchange as long as they do not have access to affordable coverage,

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And if the employer offers affordable coverage in the future, the employees will no longer qualify for a subsidy at that time?

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