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Effective January 1, 2016, employers will become directly responsible for obtaining private sector insurance for their employees and paying at least 50% of the premiums.
Historically, France’s health care system has been primarily funded by the French government and supplemented with optional private insurance policies. In an attempt to provide greater coverage to all employees, companies will now be required to provide their employees with extended private health care insurance. This mandatory private insurance will couple with France’s national health care coverage to enhance protection for all employees and their families as well as reduce the national health care deficit.
Employer paid premiums will support a tax of 14% – which may be reduced to 7% if policies meet certain minimum and maximum provisions under the law.
Please contact Ray Aguilera (USA) or Dominique Piermay (France) for assistance navigating through these important mandatory changes.