What is a Mandatory healthcare insurance plan in France?
France has a unique social protection system, based on Social Security coverage supplemented by private schemes. Since 2016, French employers have been obliged to offer their employees a mandatory healthcare insurance.
For foreign companies setting up in France, especially American ones, it is crucial to understand this obligation and its role in the French social system.
France has a unique social protection system, based on Social Security coverage supplemented by private schemes. Since 2016, French employers have been obliged to offer their employees a mandatory healthcare insurance.
For foreign companies setting up in France, especially American ones, it is crucial to understand this obligation and its role in the French social system.
What is a mandatory healthcare insurance plan in France?
Mandatory healthcare insurance, also known as complementary group healthcare insurance, is a healthcare contract offered by an employer to its employees.
It is designed to supplement Social Security reimbursements, which cover only a portion of medical expenses.
A mandatory group scheme:
Since the implementation of the ANI (Accord National Interprofessionnel) law in 2016, all French companies must offer their employees a group healthcare mutual contract from the moment they do not already have equivalent coverage.
This contract must meet specific criteria established by French legislation.
A minimum basket of benefits:
Compulsory health insurance must include basic cover, known as a "minimum care basket".
These guarantees include:
- Full coverage of the co-payment for consultations, procedures and services reimbursed by Social Security.
- Coverage of hospitalization costs, including the fixed daily rate.
- Minimum coverage for dental care (dentures and orthodontics) and optical care (glasses, contact lenses).
Shared financing:
The employer must pay at least 50% of the contributions linked to the contract. The remainder is financed by the employee via a deduction from his or her salary.
Possible exemptions:
Some employees may opt out of mandatory healthcare insurance. This applies, for example, to those who already have coverage through another means, such as their spouse's mutual insurance company or individual insurance. Such exemptions must, however, be justified and monitored.
Why is mutual healthcare insurance mandatory for employers in France?
The generalization introduction of mandatory healthcare insurance aims to improve access to healthcare for all employees, while limiting inequalities.
A social objective:
Mandatory healthcare insurance enables employees to benefit from appropriate coverage at reasonable cost. It is particularly important for low-income employees, who can thus access medical care that is often costly, such as specialist consultations or dental prostheses.
A legal requirement:
The introduction of this obligation fits in with the modernization of French labor law. It ensures that all employees in the private sector have a minimum level of coverage, regardless of their employer.
Contributing to a company's attractiveness:
Mandatory healthcare insurance is also an asset for employers. In a competitive job market, offering a good medical coverage helps to attract and retain talent.
For foreign companies, it is also an opportunity to demonstrate their commitment to the well-being of their employees in France.
The risks of non-compliance
For an employer, failure to comply with this obligation exposes the company to legal and social risks. In the event of an URSSAF inspection, financial penalties may be applied.
In addition, an employee who does not benefit from adequate coverage could incur liability on the part of his or her employer.
Compulsory health insurance in France is much more than a legal formality: it embodies the employer's commitment to the well-being of its employees. Understanding its rules, such as shared financing and minimum guarantees, is essential for any company, particularly foreign, wishing to enter the French market.
By complying with these obligations, employers not only ensure their compliance, but also contribute to the health and satisfaction of their employees.
To choose the right contract and stay in compliance with French regulations, don't hesitate to seek the help of a specialized broker. This will enable you to easily integrate this obligation into your HR strategy.