Another options that the Affordable Care Act offers is a tax subsidy. The tax credit is created to help small businesses, and 501 (c) tax-exempt organizations and targeted to those who have low to moderate income employees. The requirement for eligibility are: paying premiums for employee health insurance under a qualifying arrangement; having fewer than 25 full-time-equivalent employees (FTEs) for the tax year; and paying average annual wages of less than $50,000 per FTE (inflation-adjusted to $50,800 for tax years beginning in 2014) (Bernardi, 2014). The arrangement for premium payments is having the employer pay at minimum 50% of an employee-only coverage. The threshold for phasing out is $25000-$50000 and the health insurance premium must
