Mandatory health insurance for French employees & IPMI coverage

18 January 2016

Many employees and workers in France have international private medical insurance (IPMI) over and above their state coverage used through the French National Health Insurance (NHI) System.

The French Government promulgated the Employment Security Law (Loi No 2013-504 du 14 juin 2013 relative a la securitisation de l'emploi) (ESL), which requires all French based employers to provide mandatory supplementary health insurance coverage no later than 1 January 2016.

The majority of workers and employees have coverage under the NHI System, which is extensive and, in most cases, offering reimbursement of up to 70% of outpatient expenditure and 80% of inpatient expenditure.

Therefore, there was a missing gap where the NHI System did not cover the full medical benefits for French workers and employees, where they were required to make up the shortfall. The new mandatory supplementary health insurance coverage may have resolved this shortfall for the French workforce.

How do plans and benefits comply?

  • The minimum level of cover MUST be provided under the plans.This will include optical and dental, which are usually add-ons to IPMI policies; 
  • The insurance premium cost MUST be split between the employer and employee and the employer must pay at least 50% of the costs but can pay more; 
  • The enrolment MUST be mandatory subject to exemptions. There are possible exemptions from the requirement of mandatory enrolment by the employees but strict conditions must be met to meet the exemptions;
  • Enrolment must be automatic and mandatory for all employees/workers. If offered on an optional basis it will be taxable benefit; 
  • The taxable benefit status can, under certain circumstances, be tax compliant and avoid taxation if the statutory provisions meet the conditions; and
  • Dependants may be enrolled under mandatory or optional provisions, which will have tax implications.

By Simon Isgar, Partner at Kennedys Law

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Categories: International medical

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