Category Archives: Affordable Act Glossary

Affordable Care Act Cafeteria Plan

A cafeteria plan is a written plan under which all participants are employees, and participants are permitted to choose among at least one taxable benefit (for example, cash compensation) and at least one qualified benefit (such as employer health coverage). The qualified benefits are generally tax exempt.

Affordable Care Act Unaffordable Coverage

Under the Affordable Care Act / Obamacare, Unaffordable coverage is defined as insurance premium over 9.5% of the employee’s household income.  With the ACA, all large employers are required to offer affordable coverage to it’s employees or else pay a maximum penalty of $2,000 per employee.

If a large employer company does not offer affordable insurance, the employee can purchase the insurance from the State Insurance Marketplace.

Affordable Care Act Large Employer

Under the Affordable Care Act, an applicable large employer is an employer that employed an average of at least 50 full-time employees during the preceding calendar year.  Any company that employs under 50 employees are classified as Small Employer and are exempted from the Affordable Care Act / Obamacare.

Large Employers on the other hand must provide affordable health care insurance for its’ employees or else have to pay a maximum penalty to $2,000 per employee.  Affordable Coverage is defined as health insurance being under 9.5% of the employee’s household income.

Tea Party and Obamacare Affordable Care Act

Tea Party is a loose coalition of conservative activists, the Tea Party was a major media presence in 2009 and 2010, opposing the Obama Administration’s agenda, including the Obamacare and Affordable Care Act.

Ted Cruz, the 1st term senator from Texas, became the public face of the Tea Party, vehemently oppose Obamacare.  Sarah Palin is a another public face for the Tea Party.

AHIP – America’s Health Insurance Plans – Affordable Care Act

AHIP is the leading lobbying organization representing health insurance companies, AHIP began 2009 by offering public support for Affordable Care Act / Obamacare before spending millions of dollars in 2009 and 2010 protecting industry interests by opposing health care reform to increase competition or lower the cost of health insurance.