Jane Dotson
While part-time employees are not federally mandated to receive health insurance, some companies offer health insurance to their part-time employees. This is because health insurance is one of the top fringe benefits that can be offered at a company, improving engagement and attracting talent. If a company does choose to offer health insurance to its part-time employees, it must follow the rules set by the Affordable Care Act (ACA). The ACA requires employers to offer health insurance to employees working at least 30 hours per week (or 130 hours per month) to avoid paying penalties. However, insurance companies generally require employees to work a minimum of 20 hours per week to be eligible for their plans, but this is subject to the individual carrier and state jurisdictions. If part-time employees are not offered health insurance by their employer, they can purchase it through the Health Insurance Marketplace.
| Characteristics | Values |
|---|---|
| Part-time employees eligible for health insurance | After working 240 hours over three consecutive months (an average of 20 hours per week) |
| Health insurance for part-time employees mandatory? | No, but it is mandatory for full-time employees |
| Health insurance for part-time employees in the federal government | Yes, as long as the position is permanent |
| Companies offering health insurance to part-time employees | Starbucks, Amazon, Chipotle, JPMorgan Chase, Lowe's, Costco, Walmart, Meijer, King, Blizzard Entertainment, Activision Publishing, American Red Cross, Aquent, and more |
| Alternatives | Health Reimbursement Arrangements (HRAs), Qualified Small Employer Health Reimbursement Arrangement (QSEHRA), health stipends, Flexible Spending Accounts (FSAs) |
| Buying health insurance independently | Part-time employees can buy health insurance in the Health Insurance Marketplace. They may qualify for savings based on their income. |
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What You'll Learn
Part-time jobs with health insurance
While it is not a requirement for employers to provide health insurance to part-time workers, some companies do offer this benefit. This is especially true for large employers, as the Affordable Care Act (ACA) mandates that employers above a certain size must provide health insurance to full-time workers. According to the ACA, "full-time" is defined as 30 hours or more per week, and part-time employees working these hours may be eligible for health insurance.
Some companies that offer health insurance to part-time employees include:
- Starbucks: Health coverage includes medical, dental, and vision plans.
- Amazon: Offers health insurance to part-time employees working 20 or more hours per week, including medical, dental, and vision insurance plans.
- Trader Joe's: Offers low-cost insurance plans for medical, vision, and dental coverage to part-time employees.
- Chipotle: Provides medical, dental, and vision insurance with dependent coverage to all hourly employees.
- Lowe's: Offers preventative health plans, dental and vision insurance, short-term disability insurance, and life insurance plans for part-time employees.
- Costco: Part-time employees can enrol in a competitive benefits package that includes life insurance, healthcare coverage, and a core dental care plan.
- American Red Cross: Part-time workers on the job for at least 20 hours a week are eligible for health benefits, with a choice of four plans.
- UPS: Unionized workers may be eligible for health insurance if they work at least 225 hours during a three-month period. Benefits include medical care, prescription drugs, dental care, and more.
If you are unable to obtain health insurance through your part-time job, you can explore other options such as purchasing health insurance through the Health Insurance Marketplace. This option may provide savings on monthly premiums and out-of-pocket costs based on your income and household size. Additionally, certain government jobs offer health insurance benefits to part-time employees, as long as their positions are permanent.
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Health insurance requirements for employers
Health insurance is a significant benefit for employees, and it is becoming an in-demand benefit even for part-time workers. While it is not a requirement for part-time workers, some employers do offer health insurance to their part-time staff. For instance, Starbucks, Amazon, and Chipotle offer health insurance to their part-time employees.
According to the Affordable Care Act (ACA), employers with 50 or more full-time employees (or the equivalent of part-time employees) are considered "applicable large employers" (ALE) and must offer "minimum essential coverage" or face penalties. This mandate applies to employers in the U.S. mainland but not in U.S. territories like Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, and the Northern Mariana Islands.
The ACA defines “full-time” as 30 hours or more per week, and employers must offer health insurance to 95% of these full-time employees and their children up to the end of the month in which they turn 26. The cost of employee-only coverage should not exceed 8.39% of an employee's household income in 2024 and 9.02% in 2025 to be considered "affordable."
A plan provides "minimum value" if it pays at least 60% of the cost of covered services (deductibles, copays, and coinsurance). Employers who do not offer at least one medical plan option that provides "affordable," "minimum value" coverage may be subject to penalties if any full-time employee purchases coverage on the Marketplace and receives a federal premium subsidy.
It is important to note that certain states, such as California, Massachusetts, and New Jersey, have mandates that require their residents to have health insurance. Additionally, while health insurance is no longer compulsory at the federal level in the U.S., some states still have an individual mandate in place, requiring residents to maintain health insurance to avoid tax penalties.
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Health insurance eligibility for part-time workers
Health insurance coverage is a valuable benefit for part-time workers, but it is not a mandatory benefit for employers to provide. In the US, federal law does not require employers to offer health insurance to part-time employees, and it is up to the discretion of the company whether to provide this benefit. However, if an employer does offer health insurance to one part-time worker, they cannot deny coverage to another part-time employee with the same job type and working hours.
The Affordable Care Act (ACA) defines a part-time employee as someone who works less than 30 hours per week or less than 130 hours per month for more than 120 consecutive days. If an employer chooses to offer health insurance to part-time workers, they must follow the rules set by the ACA. It is important to note that insurance companies have different rules and requirements regarding offering health insurance to part-time employees.
Some companies that offer health insurance to part-time workers include JPMorgan Chase, Lowe's, Chipotle, Starbucks, Amazon, and the federal government. These companies typically require part-time employees to work a minimum number of hours per week or be employed for a certain duration before becoming eligible for health benefits. For example, JPMorgan Chase and Amazon offer health insurance to part-time employees working at least 20 hours per week, while Lowe's and Chipotle provide coverage to those working less than 30 hours per week.
If a part-time worker is unable to obtain job-based health insurance, they can explore alternative options such as purchasing insurance through the Health Insurance Marketplace. The Marketplace takes into account factors like household size and income to determine eligibility for savings on monthly premiums and out-of-pocket costs. Additionally, part-time employees may qualify for other benefits, such as paid sick leave or the Family and Medical Leave Act, depending on their company's policies and state laws.
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Buying health insurance independently
While some part-time jobs offer health insurance, it can be challenging to find an employer that provides this benefit. Even when health insurance is offered, it may not cover all your medical expenses. If you are unable to obtain health insurance through your employer, you can consider buying health insurance independently.
Firstly, you can purchase individual or family health insurance directly from a health insurance company. This option provides flexibility in choosing a plan that suits your needs and budget. You can compare different insurance companies' plans and select one that balances monthly premiums with out-of-pocket costs.
Secondly, you may be eligible to buy health insurance through the Affordable Care Act (ACA) marketplace, also known as Obamacare. The ACA offers comprehensive coverage, including emergency room visits, doctor visits, maternity care, prescription drug benefits, and mental health care. One of the advantages of the ACA is that it does not cap the benefits you can receive and limits your out-of-pocket expenses for the year. Additionally, you may be eligible for subsidies and tax credits to reduce the cost of premiums if your household income is below 400% of the federal poverty level.
Thirdly, you can explore private health insurance websites like eHealth, which offer personalized coverage solutions and a wide range of plans to choose from.
Lastly, you can consider short-term health insurance plans if you are in between jobs or need temporary coverage. These plans are typically purchased directly from insurance companies or brokers and may provide essential coverage until you find a more permanent solution.
Remember, when buying health insurance independently, it is essential to carefully review the terms and conditions of each plan to ensure it meets your specific needs and budget.
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Health insurance benefits for part-time government workers
Health insurance is a valuable benefit for part-time workers, but it can be challenging to find an employer that provides it. While some employers offer health insurance plans to both part-time and full-time workers, others limit their coverage to full-time employees only.
In the United States, federal government workers are eligible for the Federal Employee Health Benefits Program (FEHB), which offers health insurance for employees, their spouses, and their children under 26. This program provides the widest selection of health insurance plans in the country, with over 200 options to choose from. To be eligible for FEHB, federal employees must work a minimum of 20 hours per week, and they may need to work for a certain period before becoming eligible for benefits. It's important to note that part-time federal employees may pay a greater percentage of the premium than their full-time counterparts.
Local governments may also provide health insurance to part-time employees, although the availability and specifics of these plans can vary. For example, in San Mateo County, California, regular and probationary employees who work 20 hours or more per week can enrol in a health plan that covers them, their spouse, and their children under 26.
In addition to government jobs, some private companies offer health insurance to part-time workers. For instance, Starbucks provides health coverage, including medical, dental, and vision plans, to employees averaging 20 hours per week over three consecutive months. Similarly, Amazon offers health insurance to part-time employees scheduled to work 20 or more hours per week, along with dental and vision insurance plans. Other companies known for providing health benefits to part-time workers include REI, the American Red Cross, and Chipotle.
If you work part-time and cannot access job-based health insurance, you can explore other options. You may purchase health insurance through the Health Insurance Marketplace and could qualify for savings based on your income. Alternatively, you can look into Medicaid or the Children's Health Insurance Program (CHIP) to see if you are eligible for free or low-cost coverage.
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Frequently asked questions
While federal law does not require employers to offer health insurance to part-time employees, some companies choose to do so. If you work for a large company, you may be eligible for health insurance if you work a minimum number of hours, usually 20-30 hours per week.
Some companies that offer health insurance to part-time employees include:
- Starbucks
- Amazon
- Walmart
- Costco
- Chipotle
- JPMorgan Chase
- Lowe's
- Meijer
- The American Red Cross
- Activision Publishing
- Blizzard Entertainment
- King
Offering health insurance to part-time employees can be a smart move for companies as it can make them a sought-after employer. It can also help with employee retention and satisfaction.
Some alternatives to providing health insurance for part-time employees include:
- Health Reimbursement Arrangements (HRAs): Employers can reimburse employees tax-free for their individual health insurance premiums and qualifying out-of-pocket costs.
- Health Stipends: Employers set a monthly allowance for employees to spend on medical care, and employees submit proof of eligible expenses to be reimbursed.
- QSEHRA (Qualified Small Employer Health Reimbursement Arrangement): This is for employers with fewer than 50 full-time employees who don't offer traditional group health insurance. It allows employers to reimburse employees for eligible health insurance premiums and medical expenses up to a predetermined amount.
