Part B—Employer Responsibilities

§18101. Free choice vouchers

(a) In general

An offering employer shall provide free choice vouchers to each qualified employee of such employer.

(b) Offering employer

For purposes of this section, the term "offering employer" means any employer who—

(1) offers minimum essential coverage to its employees consisting of coverage through an eligible employer-sponsored plan; and

(2) pays any portion of the costs of such plan.

(c) Qualified employee

For purposes of this section—

(1) In general

The term "qualified employee" means, with respect to any plan year of an offering employer, any employee—

(A) whose required contribution (as determined under section 5000A(e)(1)(B) of title 26) ¹ for minimum essential coverage through an eligible employer-sponsored plan—

(i) exceeds 8 percent of such employee's household income for the taxable year described in section 18082(b)(1)(B) of this title which ends with or within in ² the plan year; and

(ii) does not exceed 9.8 percent of such employee's household income for such taxable year;

(B) whose household income for such taxable year is not greater than 400 percent of the poverty line for a family of the size involved; and

(C) who does not participate in a health plan offered by the offering employer.

(2) Indexing

In the case of any calendar year beginning after 2014, the Secretary shall adjust the 8 percent under paragraph (1)(A)(i) and 9.8 percent under paragraph (1)(A)(ii) for the calendar year to reflect the rate of premium growth between the preceding calendar year and 2013 over the rate of income growth for such period.

(d) Free choice voucher

(1) Amount

(A) In general

The amount of any free choice voucher provided under subsection (a) shall be equal to the monthly portion of the cost of the eligible employer-sponsored plan which would have been paid by the employer if the employee were covered under the plan with respect to which the employer pays the largest portion of the cost of the plan. Such amount shall be equal to the amount the employer would pay for an employee with self-only coverage unless such employee elects family coverage (in which case such amount shall be the amount the employer would pay for family coverage).

(B) Determination of cost

The cost of any health plan shall be determined under the rules similar to the rules of section 300bb–4 of this title, except that such amount shall be adjusted for age and category of enrollment in accordance with regulations established by the Secretary.

(2) Use of vouchers

An Exchange shall credit the amount of any free choice voucher provided under subsection (a) to the monthly premium of any qualified health plan in the Exchange in which the qualified employee is enrolled and the offering employer shall pay any amounts so credited to the Exchange.

(3) Payment of excess amounts

If the amount of the free choice voucher exceeds the amount of the premium of the qualified health plan in which the qualified employee is enrolled for such month, such excess shall be paid to the employee.

(e) Other definitions

Any term used in this section which is also used in section 5000A of title 26 shall have the meaning given such term under such section 5000A.

(Pub. L. 111–148, title X, §10108(a)–(e), Mar. 23, 2010, 124 Stat. 912, 913.)

References in Text

Section 5000A(e)(1)(B) of title 26, referred to in subsec. (c)(1)(A), was in the original "section 5000A(e)(1)(B)" and was translated as if it had been followed by "of the Internal Revenue Code of 1986", to reflect the probable intent of Congress.

¹ See References in Text note below.

² So in original. The word "in" probably should not appear.