The Qualifying Offer Method is essentially a reporting short-cut for those employers that are offering affordable coverage to the majority of their full-time employees.
If you offer health insurance coverage to at least 95% of your full-time employees, you may be eligible to utilize the Qualifying Offer Method, provided the offer satisfies all of the following:
- A “Qualifying Offer” is an offer that satisfies all of the following criteria:
- It is an offer of coverage that provides minimum value;
- The employee cost for employee-only coverage for each month does not exceed 9.83% of the mainland single federal poverty line divided by 12; (($104.52 (9.83% of 2020’s FPL of $12,760/12 months)).
- The offer of coverage is also made to the employee’s spouse and dependents (if any).
Please note that ACA Track cannot provide legal or tax advice. We recommend speaking with your HR Team and/or legal counsel before determining whether or not your company is eligible to utilize the Qualifying Offer Method.