What does the ACA require from larger employers regarding health insurance?

The Affordable Care Act (ACA) includes provisions that specifically target larger employers, commonly referred to as "applicable large employers" (ALEs), which are generally those with 50 or more full-time equivalent employees. The ACA mandates that these larger employers must offer affordable health insurance that meets minimum essential coverage standards to their full-time employees and their dependents.

If an ALE fails to provide this health insurance and at least one of their employees obtains premium tax credits through the Health Insurance Marketplace, the employer may be subject to penalties. These penalties are designed to encourage compliance with the ACA and ensure that employees have access to affordable healthcare. The requirement aims to reduce the number of uninsured individuals and promote comprehensive health coverage in the workforce.

The other choices do not reflect the actual requirements of the ACA. No mandate states that larger employers can opt out of providing health insurance entirely or that they must offer unlimited coverage. Additionally, reducing employee hours to avoid offering insurance would not fulfill the intent of the ACA, as it aims to ensure that employees have access to healthcare coverage rather than enabling circumvention of the employer mandate.