Georgia Navigator Practice Exam

What characterizes larger employers in relation to healthcare coverage?

1. They have less than 25 employees.

2. They are required to provide insurance options.

3. They generally have 50 or more employees.

4. They cannot offer health benefits.

The correct answer is: They generally have 50 or more employees.

Larger employers are typically characterized by having 50 or more employees. This distinction is significant because the Affordable Care Act (ACA) defines large employers as those with 50 or more full-time equivalent employees, thereby making them subject to specific regulations regarding healthcare coverage. For instance, those employers are required to offer health insurance to their full-time employees or face potential penalties. This threshold serves to differentiate between types of employers in terms of their obligations and the benefits they may offer to employees. In contrast to this answer, smaller employers, such as those with fewer than 25 employees, do not have the same requirements under the ACA. Additionally, the notion that larger employers cannot offer health benefits is inaccurate, as many large organizations provide comprehensive health insurance options as part of their employment benefits to attract and retain talent.