Are employers required to provide health benefits under the Affordable Care Act?

Employers, particularly applicable large employers (ALEs) under the Affordable Care Act (ACA), are required to provide affordable health insurance to full-time employees. An ALE is defined as any employer with 50 or more full-time equivalent employees. The ACA stipulates that these employers must either offer health coverage that meets minimum essential coverage criteria to at least 95% of their full-time employees or potentially face penalties for not doing so.

The health insurance offered must also be affordable, meaning that the employee's contribution to the premium cannot exceed a certain percentage of their household income. This provision ensures that employees have access to necessary health coverage without facing excessive financial burden.

The requirement primarily focuses on full-time employees, typically those working 30 or more hours a week, which is why the emphasis is placed on this employee classification. Part-time employees do not have the same entitlements under the ACA, though some employers may choose to offer benefits more broadly.

This requirement helps to expand healthcare coverage and promote health equity in the workforce, which is a fundamental goal of the ACA.