Affordable Care Act

The Basic Facts

Defining “All” Full-Time Employees

Although the ACA provides that the employer’s obligation is to offer MEC to all its FTEs and their dependents, the regulations propose that offering coverage to 70 percent of an employer’s FTEs and to their dependents is adequate to satisfy this mandate in 2015 (increasing to 95 percent in 2016). It doesn’t matter whether the failure to offer coverage to the other 30 percent (or 5 percent in 2016) is inadvertent or deliberate. In short, employers have a five percent margin of error, with respect to offering coverage to FTEs and their dependents.