What is our minimum funding requirement?

• A. 60% of the employee only cost of the lowest cost plan in the headquarters region
• B. 70% of the employee only cost of the lowest cost plan in the headquarters region
• C. 70% of the employee only cost of the highest cost plan in the headquarters region
• D. 50% of the employee only cost of the lowest cost plan in the headquarters region

Answer: (B)

Minimum funding requirement is about how much the employer must contribute toward employee health premiums. In this rule, the requirement is 70% of the employee-only premium for the lowest-cost medical plan in the headquarters region. This means you fund at least that share toward the cheapest option available for single coverage in that region. For example, if the cheapest employee-only plan costs $300 per month, the employer would contribute at least $210. The other choices reference different percentages or apply to a different plan (like the most expensive one), which isn’t how the rule is defined.