HR Update France: Mandatory Company Health Insurance

As from January 1st 2016, the implementation of a Company health insurance plan will become mandatory. Further to an important modification in French Law, all companies, whatever their size, will have to provide a health insurance plan to their employees.

What is the extent of this obligation?

A minimal coverage will be established by legal decree and should correspond to the coverage negotiated between the Employees and Employers Unions at the national level. This coverage should be the following:

==> Reimbursement of standard base costs of:

– medical consultations;
– technical acts (such as x-rays, tests, …);
– pharmaceutical expenses.

==> Minimal reimbursement of denture expenditure

==> Reimbursement of hospitalization fees

==> Reimbursement of eye care expenses up to a capped amount


The costs of medical acts as well as the bases of reimbursement and reimbursement rates are variable, please do not hesitate to contact us for more details. 

What will the employer have to pay?

The employer will have to support 50% minimum of the monthly cost of the health plan.  The remaining part will be supported by the employee.

In the framework of a human resources policy the company can support more than 50%, up to 100%.

When does this obligation take effect?

The negotiation on the implementation of a company health plan has started at the branch and interprofessional level between the Employees and Employers Unions who have the obligation to reach an agreement by June 30th, 2014 at the latest. In the absence of an agreement at branch level at this date, negotiations will have to start at the company level for those which have Employee Union representative(s) (the concerned companies are those with 50 or more employees). For the other companies (with less than 50 employees or without Employee Union representative), an agreement can be negotiated with the Employee Representative(s) or the health insurance plan can also be implemented at the initiative of the employer in the framework of a Unilateral Employer Decision.

The implementation of a company’s health plan must be effective on January 1st 2016 at the latest, or earlier if a branch agreement provides for an earlier date.

Companies which do not currently have a health insurance plan can however decide to implement such a plan earlier. This is an opportunity for these companies to communicate this new benefit as part of a proactive benefit improvement policy rather than as an act of compliance to a new legal obligation.

Please contact us if you require any further information on this subject.

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