Qualified Health Plan (QHP)
Definition
A health insurance plan that meets the requirements of the Affordable Care Act (ACA) for coverage and affordability.
What is a QHP?
A QHP is an ACA-compliant health plan that provides essential health benefits, complies with cost-sharing limits, and is offered through a recognized insurance marketplace or group provider.
Why is a QHP Important for Employers?
- Fulfills ACA employer mandate requirements
- Helps avoid potential tax penalties
- Provides employees with comprehensive, standardized healthcare coverage
- Supports a competitive benefits offering to attract and retain talent
FAQs
What makes a health plan a Qualified Health Plan?
A QHP meets Affordable Care Act (ACA) standards, offering essential health benefits, meeting cost-sharing limits, and being certified by a Health Insurance Marketplace.
Can employers offer QHPs outside of the public marketplace?
Yes. QHPs can also be offered through private carriers or PEOs, as long as they meet ACA criteria.
Why is offering a QHP important for ACA compliance?
It helps employers avoid penalties by ensuring the coverage they offer is both affordable and meets minimum value requirements.
How ExtensisHR Can Help
We offer access to QHPs through our benefits platform by:
- Partnering with leading national and regional carriers
- Verifying plans meet ACA affordability and coverage standards
- Managing enrollment, administration, and ongoing compliance reporting