Per IRS guidelines, insurance benefits are reserved for employees working at least 30 hours per week. Part-time employees are not eligible for employer-sponsored medical insurance. However, providing a monthly health allowance is a viable alternative to assist part-time employees with their medical costs. For further assistance or to discuss benefit options, please contact our HR department.
Eligibility for Employer-Sponsored Medical Insurance
Full-Time Employees: Employees who meet the applicable full-time criteria may be eligible for employer-sponsored medical insurance, subject to the terms and eligibility requirements of the benefits plan.
Part-Time Employees: Employees working fewer than 30 hours per week are generally considered part-time for ACA purposes. They are not required to be offered health coverage under the ACA employer mandate solely because they are employed; however, an employer may choose to offer coverage to part-time employees if permitted by the applicable benefits plan.
Plan-Specific Eligibility: Eligibility should always be determined according to the specific insurance plan, including any requirements relating to working hours, waiting periods, employment status, and other applicable conditions.
Alternative Options
Where part-time employees are not eligible for the employer-sponsored medical plan, employers may consider other forms of support, subject to applicable tax and employment requirements.
Possible options may include:
Health or medical allowance: An employer may provide a health-related allowance, subject to applicable payroll and tax treatment. A cash allowance should not automatically be treated as equivalent to employer-sponsored health insurance.
Individual health insurance: Employees may obtain individual health insurance coverage independently, including through available federal or state marketplaces, where eligible.
Other benefits: Employers may consider other benefits or allowances in accordance with their compensation and benefits policies.
For further assistance or to confirm eligibility, employees should refer to the applicable benefits plan documentation or contact the Support team.