Are employers obligated to provide job-based health insurance?
In California, employers are typically not obligated to provide health insurance to their employees. The state does not have a “mandate” law, meaning employers are not legally required to provide health insurance to their employees. However, employers with 50 or more employees are typically legally required to provide health insurance in accordance with the federal Affordable Care Act (ACA). Under the ACA, if employers with 50 or more employees do not offer insurance, they may be subject to a tax penalty and could be held liable for unpaid medical bills of employees who are not offered health insurance. Additionally, some employers in California may choose to offer health insurance to their employees as part of the company’s benefits package. This may be done to attract and retain quality employees, which could increase the company’s overall productivity and profit margins. Ultimately, while employers in California are not obligated to provide health insurance to their employees, they may choose to provide it as part of a comprehensive employee benefits package. Additionally, employers with 50 or more employees who do not provide health insurance to their employees may face a tax penalty and could be held liable for unpaid medical bills.
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