Employer Mandate Two-Part Test

The employer mandate is a two-part test that applies to Applicable Large Employers and ensures that they are offering affordable medical insurance to their eligible “full-time” qualified employees.

The ACA requires that plans offered by employers fit the following criteria:

1. Offer minimum essential coverage to at least 95% of its full-time employees and their dependents up to age 26; and
2. 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.