Health insurance alternatives for small businesses: How to make the most out of MEC

Does your small or medium-sized company need to provide health insurance for your employees? 

When your company reaches the 50-plus employee milestone (including the combined hours of part-time employees), the ACA requires that the organization provides affordable coverage. Reaching the 50 FTE threshold designates an employer as an ALE (Applicable Large Employer), obligated to provide affordable coverage meeting minimum requirements to at least 95% of workers. Failure to do so exposes the company to massive ACA fines, including a penalty of $2,900 per employee.

Providing healthcare to workers also helps your company prosper

Even if your workforce is below the threshold, that doesn’t mean you shouldn’t think seriously about offering coverage. Health insurance is consistently ranked among workers' most preferred benefit options, making it a productive tool for enhancing your recruiting and retention efforts. A US Chamber of Commerce study found that 83% of workers rated employer-provided health insurance as “extremely important” when considering a new position. Employees with access to workplace-based health insurance are more productive and loyal than those without.