Top 3 Goals of the Affordable Care Act (ACA) for Employers

The Affordable Care Act (ACA), also known as the Patient Protection and Affordable Care Act, is a comprehensive piece of legislation that represents a significant milestone in United States healthcare reform. Since its legislative passing in March 2010, the ACA has helped reduce the number of uninsured people in the US by more than 20 million.

The ACA also defined key mandates and responsibilities for businesses, including significant penalties for failure to comply with ACA requirements. Although navigating these requirements can seem like a daunting task, it’s important to remember that the ACA ultimately serves to help employers provide better care for all their employees and support a healthier workforce.

Based on research, health insurance is a top priority for job seekers and employees. In fact, a poll for the Protecting Americans Coverage Together (PACT) campaign found that as high as 96% of respondents believe it is important for a job to offer health insurance, with the majority reporting they would not accept a job that does not provide health benefits. Therefore, understanding your responsibilities under the ACA is crucial for businesses to attract and retain top talent by offering competitive health benefits that meet ACA compliance requirements.

This article will break down the top three goals that the Affordable Care Act (ACA) set to accomplish and what they mean for employers. Read on to learn more!

Goal 1: Expand Access to HealthCare

The first and most fundamental goal of the ACA is to make health insurance more accessible to Americans. The ACA was designed to directly address long-standing barriers within the U.S. healthcare system that have made it challenging for many Americans to secure adequate health coverage on their own or through their employer.

What does this mean for employers?

For employers, this translated into specific requirements, especially for Applicable Large Employers (ALEs). A company is considered an ALE when they have 50 or more full-time or full-time equivalent (FTE) employees.

ACA ALE requirements

Under the Employer Shared Responsibility Provisions (Employer Mandate), ALEs must satisfy two main requirements:

Part A – Offering Minimum Essential Coverage (MEC):

• ALEs must offer minimum essential coverage (MEC) to at least 95% of full-time workers or full-time equivalents, as well as their dependents.
• Failing to meet this requirement can result in a penalty fine of $2,900 per employee (adjusted annually), even if just one employee obtains subsidized coverage through the exchange.

Part B – Offering Affordable, Minimum Value Coverage:

• Must cover at least 60% of the anticipated total expenses for an average population.
• Must cover inpatient and outpatient care, emergency services, maternity care, and other specific conditions.
• Must meet the affordability threshold set by the U.S. Internal Revenue Service (IRS) each year, which is 9.02% of an employee's household income for 2025.

By encouraging businesses to offer affordable, quality health insurance, the ACA has helped millions of employees and their families gain access to preventive care, chronic disease management, and necessary medical services. In turn, this expansion of coverage supports healthier workplaces, reduces absenteeism, and improves overall workforce productivity. With the help of the ACA, a 2024 report from the U.S. Centers for Disease Control and Prevention (CDC) found that the overall number of Americans without health insurance has dropped by 8.2 million from 2019 to 2023.