This entails that businesses are required to offer health insurance for their employees that is affordable, all-encompassing, and pays for (on average) at least sixty percent of their workers’ medical expenses. Additionally, plans are required to ″substantially″ cover services provided by physicians and inpatient hospitals.
What are employer-sponsored health plans?
- As a perk of work, employees and their dependents (and, in most circumstances, spouses) may be eligible for participation in employer-sponsored health plans, which are a type of health insurance coverage.
- About 160 million Americans, or about half of the entire population of the country, are presently covered by some form of medical insurance thanks to health plans that are offered by their employers.
What is an employer payment plan?
According to the definition of the term ″employer payment plan″ provided in this notice, an arrangement in which an employee has the option of having a post-tax amount allocated toward health coverage or taking that amount as cash compensation is not considered to be part of an employer payment plan.
Are employer payment plans considered group health plans?
According to the information provided in Notice 2013-54, these employer payment plans are considered to be group health plans and are therefore subject to the market reforms. These reforms include the prohibition on annual limits for essential health benefits as well as the requirement to provide certain preventive care without requiring the patient to pay any portion of the cost.