Alabama Agricultural and Mechanical University
Office of Human Resources Normal, AL 35762
Phone: 256.372.5835 Fax: 256.372-5881
MEMORANDUM
To: All Faculty and Staff Employees
From: Cassandra Tarver-Ross, PHR, SHRM-CP
Director of Human Resources
Date: September 24, 2013
Re: Health Insurance Marketplace Coverage Options Provided by the Affordable Care Act (ACA)
Beginning January 1, 2014, the Affordable Care Act (ACA) mandated that individuals are required to purchase health
insurance through their employer or purchase their own individual plan. Alabama A&M University is required by law to
provide this notice to all employees whether you are participating the university’s group health insurance or/and working
full-time or part-time.
In the state of Alabama, the federal government will operate Alabama’s exchange program. The federal government
requires employer’s health plans to cover at least 60% of the cost of covered medical procedures for a premium cost and
does not exceed 9.5% of the employee’s household income. The University offers a health plan that meets the minimum
value test that is required by ACA.
Please note: The tax penalties for not obtaining health insurance that meets the government’s minimum coverage
requirement are:
For the year of 2014, the penalty will be $95 of 1% taxable income for no insurance
For the year of 2015, the penalty will be $325 or 2% taxable income for no insurance
For the year of 2016, the penalty will be $695 or 2.5% taxable income for no insurance
Those who can’t afford health insurance may be eligible for a tax credit to help purchase coverage on the health care
exchange. Uninsured Americans who incomes range between 133% and 400% of the poverty level (which currently
means incomes of $14,856 to $44,680 for individuals; $30,656 to $92,200 for a family of four) may be eligible for the
federal subsidies to buy insurance through the exchange.
If an employee purchase coverage through the insurance exchange, the employee may lose any employer contribution
towards the cost of the employer provided coverage. All or a portion of the university’s contribution may be excludable
for federal income tax purposes.
Full-time employees working 30 hours or more per week are eligible to enroll in the university’s group health plan.
Please note: Alabama A&M University has no information or expertise on options nor is the Office of Human Resources
allowed to answer question regarding the options on the exchange. For additional information regarding the ACA or the
Health Insurance marketplace, please call 1-800-318-2596 or visit https://www.healthcare.gov/ The federal government
will operate the exchange for Alabama
If you have any questions regarding the letter, please contact the Office of Human Resources at 256-372-5835.
