Navigating the Affordable Care Act’s “Shared Responsibility Provisions” for Employers with +50 FTE


The Affordable Care Act (ACA), often referred to as Obamacare, introduced significant changes to the U.S. healthcare system. Among its various provisions, the ACA established the “Shared Responsibility Provisions” to ensure employers play an active role in providing affordable health insurance coverage to their employees. For businesses with 50 or more full-time equivalent (FTE) employees, understanding and complying with these provisions can be complex and time-consuming. Fortunately, Policy Advantage Insurance Services is here to help employers navigate the intricacies of the ACA and find valuable solutions for their specific needs that create competitive advantage.

Understanding the Shared Responsibility Provisions

Under the Shared Responsibility Provisions, known as the Employer Shared Responsibility Mandate or the “employer mandate,” applicable large employers (ALEs) must meet certain requirements regarding health insurance coverage for their full-time employees.

  1. Applicable Large Employers (ALEs): An ALE is defined as a business with an average of 50 or more full-time equivalent employees during the preceding calendar year. It’s important to note that both full-time and full-time equivalent employees count toward this threshold.
  2. Offer of Minimum Essential Coverage (MEC): ALEs must offer MEC to at least 95% of their full-time employees and their dependents up to age 26. MEC is a basic level of health coverage that meets certain requirements outlined by the ACA.
  3. Affordable Coverage: The coverage offered by ALEs must be affordable, meaning that the employee’s share of the premium for self-only coverage does not exceed a certain percentage of their household income.
  4. Reporting Requirements: ALEs must also fulfill reporting requirements to the Internal Revenue Service (IRS) by providing information about the health coverage they offer to their employees.

Navigating Shared Responsibility Provisions with Policy Advantage Insurance Services

Complying with the ACA’s Shared Responsibility Provisions can be a challenging task for employers. That’s where Policy Advantage Insurance Services comes in. With our expertise and comprehensive knowledge of the ACA regulations, we can assist employers in navigating the complexities of the employer mandate.

  1. Compliance Assessment: Policy Advantage Insurance Services can help employers determine whether they qualify as an ALE and ensure they understand their obligations under the Shared Responsibility Provisions. We can assess your workforce size, evaluate hours worked by employees, and provide clarity on the complex rules and regulations associated with the ACA.
  2. Coverage Analysis: Choosing suitable health insurance coverage for your employees while meeting the affordability standards can be a daunting process. Policy Advantage Insurance Services can analyze various health insurance options available in the market and assist you in selecting plans that meet both your employees’ needs and the requirements of the ACA.
  3. Strategic Partnerships: Policy Advantage Insurance Services has strategic partnerships with various industry leading HR technology companies. These partnerships enhance our capabilities and provide our clients with access to powerful technology that integrates seamlessly with health coverage plans, can help categorize employees, track coverage affordability, prepare compliance forms, and more.
  4. Ongoing Compliance Support: As regulations and requirements evolve, maintaining compliance with the Shared Responsibility Provisions becomes an ongoing task. Policy Advantage Insurance Services can provide continuous support, keeping employers informed about updates, changes, and new compliance requirements.


Navigating the Affordable Care Act’s Shared Responsibility Provisions can be a complex and time-consuming endeavor for employers with 50 or more full-time equivalent employees. However, with the assistance of Policy Advantage Insurance Services, employers can navigate through the intricacies of the employer mandate and ensure compliance with the ACA. By leveraging our expertise, employers can focus on their core business operations, be confident in their ability to provide affordable health insurance coverage to their employees. Connect with us right here online today.

Disclaimer: This article provides a general overview of the Affordable Care Act’s Shared Responsibility Provisions for employers with 50 FTE, and is not to be considered legal or tax advice.