Myth: An "applicable large employer" will be subject to the shared responsibility penalties if the employer does not offer affordable, minimum value coverage to an employee who is not a full-time employee and that employee qualifies for a tax credit or cost-sharing reduction when the employee gets individual health insurance through the Marketplace.
Busted: Penalties for an "applicable large employer" can only be triggered if an employee to whom the employer was required to offer coverage gets individual health insurance through the Marketplace and qualifies for a tax credit or cost-sharing reduction. An employer is only required to offer coverage to "full-time employees" and their dependent children. So, an employee who is not a full-time employee cannot trigger either of the employer shared responsibility penalties for his or her employer, even if the employer does not offer the non-full-time employee affordable, minimum value coverage through the employer's group health plan.
Note that if an employer does offer group health coverage to its non-full-time employees, a non-full-time employee may be disqualified from tax credits or cost-sharing reductions on individual health insurance through the Marketplace if (a) the coverage offered through the employer's plan provides minimum value, and (b) the employee's cost for single-only coverage does not exceed 9.5% of the employee's household income. However, an employee (full-time or not full-time) who is offered coverage through an employer's group health plan generally will not be disqualified from Medicaid because of the availability of coverage through the employer; Medicaid eligibility is usually based only on the employee's household income.