EMPLOYER ALERT: FRANCE REGULATION CHANGE REGARDING COMPLEMENTARY INSURANCE COVERAGE

Celergo would like to give you advance notice regarding a French Regulation change that has HR and thus payroll impact to your operations in France. Kindly note that assistance regarding this change is outside of payroll scope; however, we want to ensure that you are aware and take the appropriate measures internally as you enter the new calendar year.

The change is concerning Mutuelle, frais de santé, or complementary health coverage/insurance plan. Employers put Mutuelle in place as an additional benefit to cover/reimburse employees for that which the French Social Security System does not cover. Effective January 1, 2016, Employers are obliged to provide Mutuelle, complementary health coverage/insurance plan, to all hired employees (with minimal exceptions). All employees in the private sector must be provided with a minimum level of coverage by a company health insurance plan. In particular, they must be covered for illness, pregnancy and accidents. This coverage will complement the state benefits provided by the French Social Security System.

The complementary health insurance plan must propose at a certain minimum coverage as outlined by the regulation. The plan also has to meet certain conditions as outlined in the regulation. Financing should be shared between employer and employee with a minimum of 50% for the employer premium.

The regulation is quite complex as it is linked to insurance compliance. Celergo suggests that you liaise directly with the health insurance bodies your company is currently registered with to discuss the conditions of your current plan and confirm the compliance of your coverage. If any changes are made to your current coverage as a result of your discussions with the health insurance bodies, please ensure that you communicate those to your payroll provider.

Should you require assistance in setting-up a Mutuelle Plan, we can provide the name of a broker who will help to implement a scheme in consideration of the company activity and applicable collective bargaining agreement. You will then need to liaise directly with the broker.

Kira Rubiano, Sr. Partner Management Specialist – Europe/Asia Pac, provides Celergo alerts

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