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What Health Insurance Benefits Are You Legally Required to Offer

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When deciding which benefits to offer employees, most Slot deposit business owners start with health insurance. Besides proving great value to employees, a comprehensive health insurance benefit package can be an effective way to attract and retain top workers. Learning the basics about health insurance plans and the legal requirements for them is the first step in putting together a comprehensive benefits package for your employees.

What are health insurance benefits?
Health insurance benefits are items or services covered under a health insurance plan, such as doctor and hospital visits, a health savings account, short-term and long-term disability insurance, and mental health services. These benefits shield insured individuals from high medical costs, making it more affordable for them to access medical care for illnesses, accidents, and overall health and wellness.

Are employers legally required to provide health insurance benefits?
Healthcare in the U.S. is increasingly expensive, so it makes sense that health insurance is one of the most desired employee benefits your business can offer. But is your business legally required to provide health insurance? Not necessarily.

The Affordable Care Act requires some employers to provide information about the health insurance marketplace, whether they offer health insurance or not. No law directly requires employers to provide healthcare plans for their employees, though the ACA generally imposes penalties on large businesses that don’t provide health insurance.

Under the ACA, employer shared responsibility provisions – also referred to as the employer mandate – requires employers with 50 or more full-time employees (or the equivalent in part-time employees) to provide health insurance to 95% of their employees and those employees’ dependents. Employers who fail to meet this requirement may incur fines of up to $3,860 for each full-time employee. Additionally, the employer mandate stipulates that the health insurance coverage must meet a minimum value standard – which, according to the IRS, means that the plan “covers at least 60% of the total allowed cost of benefits that are expected to be incurred under the plan” and will “substantially cover in-patient hospitalization services or physician services.”