Certified Staffing Profesional Practice Exam

Under the Affordable Care Act, what is required of a staffing firm classified as a large employer?

1. They must offer qualified coverage to 100% of employees

2. They must provide coverage to at least 95% of full-time employees

3. They must avoid offering any coverage

4. Only pay penalties if employees receive subsidies

The correct answer is: They must provide coverage to at least 95% of full-time employees

A staffing firm classified as a large employer under the Affordable Care Act is required to provide health insurance coverage to at least 95% of its full-time employees. This requirement is part of the employer mandate, which aims to ensure that large employers contribute to the healthcare coverage of their employees. The rationale behind this mandate is to reduce the number of uninsured individuals and to promote health care access through employer-sponsored insurance. By focusing on covering at least 95% of full-time employees, the law establishes a benchmark for employer responsibilities while allowing a slight margin for noncompliance without incurring penalties. This is designed to make it feasible for large employers to manage their health benefits obligations while accounting for certain unavoidable circumstances that may prevent complete coverage. In contrast, the other options either misstate the responsibilities or suggest noncompliance. For instance, requiring coverage for 100% of employees is not mandated in this way; provisions allow for some flexibility. Avoiding coverage entirely would not meet the requirements imposed on large employers, which could lead to significant penalties. Finally, only paying penalties if employees receive subsidies does not reflect the broader obligation to provide adequate coverage, regardless of whether individuals seek subsidies or not.