Find a plan.
A TRUSTED INDEPENDENT HEALTH INSURANCE GUIDE SINCE 1999.
Call our agency partners 866-553-3223

Featured

Featured
13 qualifying life events that trigger ACA special enrollment
Outside of open enrollment, a special enrollment period allows you to enroll in an ACA-compliant plan (on or off-exchange) if you experience a qualifying life event.

Latest News & Topics

Latest News & Topics

Featured

Featured
6 lessons Mary Lou Retton’s health scare can teach us about coverage
Mary Lou Retton’s health scare story included some important lessons for consumers, many of whom may assume that the celebrity’s health scare is a sign of barriers to affordable health coverage.
Call our agency partners 866-553-3223

full-time equivalent

What is the full-time equivalent?

The full-time equivalent is used to determine employer size under the ACA. Any employee working at least 30 hours per week is considered full time. In addition, part-time employees are counted using the full-time equivalent method of adding the total number of hours worked by all part time employees in a month, and dividing by 120.

So if a business has 10 employees who each work 80 hours per month, they would have 800 part-time hours. Dividing by 120 gives us 6.66, and the answer is rounded down to get six full-time equivalent employees.

The ACA’s employer mandate applies to any employer who has at least 50 full-time equivalent employees. This can be a combination of full-time and full-time equivalent employees, with each full-time employee counting as one, and full-time equivalent employees added as described above. If the employer had 50 or more full-time equivalent employees, they must offer affordable, minimum value health insurance to all of the full-time employees (but not to part-time employees who work fewer than 30 hours per week).

Related articles

Businesses with 50 or more full-time equivalent (FTE) employees are required to offer comprehensive, affordable health insurance coverage or they risk a penalty.
Here are some common scenarios in which you wouldn't have access to employer-sponsored insurance – and suggestions for how you can still get affordable, comprehensive health insurance.

As of 2023, the IRS has fixed the ACA's "family glitch." The family glitch previously made millions of Americans ineligible for premium subsidies in the exchange, even though their cost for employer-sponsored family health coverage was unaffordable.

You cannot qualify for a health insurance premium subsidy unless the insurance your employer offers would force you to kick in more than 9.83% of your income to cover your share of the premium in 2021 – or is so skimpy that it pays for less than 60% of the average employee’s covered benefits.