Employer Mandate Two-Part Test
The ACA requires that plans offered by employers fit the following criteria:
- Offer minimum essential coverage to at least 95% of its full-time employees and their dependents up to age 26; and
- Offer affordable minimum value coverage to 100% of its full-time employees and their dependents up to age 26.
The Minimum Value Coverage test only applies to Applicable Large Employers that pass the first test. If a company failed the first test, they would most likely fail the second test, as it is a more difficult threshold to meet.
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