Georgia Navigator Practice Exam

What is one of the requirements for a small employer to be eligible for tax credits for health insurance?

1. Pay a uniform amount for family coverage

2. Must not have any part-time employees

3. Pay a uniform amount of premium for coverage with a minimum threshold

4. Must provide benefits only to executives

The correct answer is: Pay a uniform amount of premium for coverage with a minimum threshold

To be eligible for tax credits for health insurance, a small employer must pay a uniform amount of premium for coverage that meets a minimum threshold. This requirement ensures that the employer contributes a specific percentage towards the health insurance premiums, which is designed to help lower the cost of health insurance for their employees, particularly for those with lower wages. By establishing a standard contribution, it promotes fairness and helps to ensure that employees receive a consistent level of support for their health coverage. The minimum threshold refers to the level of coverage that must be offered, which generally means that the plans must provide essential health benefits and adhere to cost-sharing limits. This requirement is part of the broader regulations under the Affordable Care Act (ACA) aimed at enhancing access to affordable health insurance for small business employees. Other options do not align with the specific requirements for obtaining tax credits, focusing instead on conditions that do not impact tax credit eligibility in the same way.