What are free choice vouchers?
An employer that offers health coverage and pays a portion of the coverage is obligated to provide “free choice vouchers” to certain eligible employees including those (a) whose required contribution for health coverage is more than 8 percent but less than 9.8 percent of that employee’s household income, (b) whose income is below 400 percent of the poverty level, and (c) who do not participate in the employer’s health plan. The payment equals the value of the monthly cost of coverage which would have been paid by the employer (for either self or family coverage, depending on what the employee elects). Any excess amount of the “free choice voucher” over the cost of coverage for the employee that purchases in the exchange is paid to the employee as wages. This is effective January 1, 2014.
