Why fighting the ACA is costing your business more than health insurance ever will

Fifteen years after the Affordable Care Act (ACA) became law, noncompliance with the employer mandate is no longer a gamble—it’s a guaranteed financial hit. Paying Internal Revenue Service (IRS) penalties can cost six figures annually, with no tax benefit. Providing affordable health insurance coverage not only saves money after deductions but also strengthens your workforce.

Noncompliance is expensive, shortsighted, and harmful

The ACA has been the law since March 2010. In its early years, resistance to the law’s employer mandate was far more common, fueled by uncertainty over whether the Act would survive legal challenges or repeal.

But today, after more than a decade of court rulings, congressional attempts at repeal, and administrative changes, the ACA is firmly entrenched. For employers with 50 or more full-time or full-time-equivalent employees—known as applicable large employers (ALEs)—the debate over whether to comply is no longer about the law’s future. It’s about the financial reality: Noncompliance is expensive, shortsighted, and ultimately more harmful to a business than simply providing coverage.

Penalties add up, with no benefits