No. Defined-contribution health plans do not meet the minimum standards for health insurance policies set by the ACA. However, defined-contribution plans are an integral part of how many small businesses can – or will be able to – afford to offer health benefits to their employees.
Your company uses the fixed contribution amount to help your employees purchase their own insurance on the private market, or through the federal health insurance marketplace. The ideal is to help your employees afford health insurance and manage your company’s health insurance costs. In some cases, defined-contribution plans are simply a win-win situation for both employers and employees.