Requires employers offering minimum essential coverage and contributing to employees’ premiums to provide free choice vouchers to qualifying employees. Such employees’ required contribution to the employer-sponsored plan must be between 8% and 9.8% of their income, which must not exceed 400% FPL, and they must not enroll in the employer-sponsored plan. Free choice vouchers would be used to purchase a Qualified Health Plan (QHP) in an Exchange.
The voucher, excluded from employees’ gross income to the extent it is less than the total cost for the QHP, would be equivalent to what the employer’s contribution otherwise would have been to the employer-sponsored plan. Effective January 1, 2014.