{"id":355829,"date":"2016-04-04T10:46:17","date_gmt":"2016-04-04T15:46:17","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/healthcare\/patient-rights\/obamacare-small-business-compliance-with-the-affordable-care-act.html"},"modified":"2025-10-16T16:10:29","modified_gmt":"2025-10-16T21:10:29","slug":"obamacare-small-business-compliance-with-the-affordable-care-act","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/healthcare\/patient-rights\/obamacare-small-business-compliance-with-the-affordable-care-act.html","title":{"rendered":"Small Business Compliance With the Affordable Care Act"},"content":{"rendered":"\n
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Small Business Compliance With the Affordable Care Act<\/h1>\n\n
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\n By Susan Buckner, J.D.<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Key Takeaways<\/h2>\n

The Affordable Care Act<\/span> (ACA<\/span>) is a federal law requiring businesses with 50 or more full-time employees to provide affordable healthcare<\/span> insurance or pay a penalty. This rule, known as the employer mandate<\/span>, applies to businesses that must comply.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

The Patient Protection and <\/span>Affordable Care Act<\/span>, sometimes called \u201cObamacare,” was enacted in 2010 to require employers with more than 50 full-time employees (Applicable Large Employers<\/span> or ALEs) to provide health insurance<\/span> for their employees. The ACA<\/span> also eliminated restrictions on pre-existing conditions<\/span> that had prevented some individuals from obtaining health benefits<\/span>.<\/p>\n

Small business owners<\/span> may find ACA<\/span> compliance complicated on paper. The requirements for small business <\/span>health insurance<\/span> depend on the number of employees and whether an employer offers group health care<\/span> plans.<\/p>\n

The ACA<\/span> also covers individual coverage through\u00a0private insurance<\/span>\u00a0plans. The outcome of\u00a0the\u00a0ACA<\/span> was affordable coverage<\/span> for more Americans.<\/p>\n

ACA<\/span> Business Requirements<\/strong><\/h2>\n

The ACA<\/span> requires health insurance<\/span> plans<\/span> for businesses with 50 or more full-time or full-time equivalent employees<\/span> who work 30 or more hours per week. These ALEs are required to:<\/p>\n