Under the Affordable Care Act (ACA), an Applicable Large Employer (ALE) may be subject to a penalty if it fails to offer minimum essential coverage to at least what percentage of its full-time employees?

Answer options:

50%

75%

95%

100%

How to approach this question

Memorize the 95% threshold for ACA employer mandate.

Full Answer

C.95%✓ Correct

Under the ACA, an Applicable Large Employer (50+ full-time equivalents) must offer minimum essential coverage to at least 95% of its full-time employees (and their dependents) to avoid the 'sledgehammer' penalty (Penalty A).

Common mistakes

Guessing 100% or 50%.

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