In: Operations Management
Under the ACA; the small group market is exempt from the "pay or play" employer mandate, meaning that small group employers (under 50 full-time equivalents) are not required to offer health insurance. True False
Answer: True
Explanation: Under the ACA (Affordable Care Act) which is a law in the U.S., all the employers are required to abide by the various mandates of the law. If the employers fail to do so, they will have to pay heavy penalty or fines. As a part of the ACA law, companies that have 50 or more full time employees or full time equivalents are required to provide mandatory health insurance to their employees. However, small employers that have less than 50 employees in their company are exempted from the “pay or play” employer mandate.