Is there Health Insurance for Part-Time Workers?

Many part-time workers wonder if they can get health insurance through their jobs. The short answer is yes, it’s possible—but it depends on the employer. Unlike full-time employees, part-timers aren’t guaranteed health coverage under federal law. Still, many companies (large and small) choose to offer health benefits to attract and retain great talent.

In this guide, we’ll break down exactly how health insurance for part-time workers works, what the Affordable Care Act (ACA) says, how small businesses can offer it, and what alternative options—like QSEHRA—exist for employers and employees alike.

What Counts as “Part-Time”?

Before diving into health insurance options, let’s clarify what “part-time” actually means.

Under the Affordable Care Act (ACA), a part-time employee is generally someone who:

• Works less than 30 hours per week, or
• Works fewer than 130 hours per month (averaged over 120 consecutive days).

That definition matters because ACA’s “employer mandate” (which requires coverage) applies only to large employers with 50 or more full-time equivalent employees—not part-timers.

👉 In short: If you’re under 30 hours a week, your employer isn’t required by law to offer health insurance—but they can if they choose to.

Do Employers Have to Offer Health Insurance to Part-Time Workers?

There’s no federal law requiring employers to provide health insurance to part-time employees. The choice is entirely voluntary.

However, many large organizations—like Starbucks, Lowe’s, Chipotle, REI, Staples, and JPMorgan Chase—do offer health coverage to their part-time workforce. Why? Because it helps them attract and retain quality staff, reduce turnover, and improve morale.

Even smaller businesses can benefit. Offering part-time health benefits can make a company stand out in a competitive job market—especially when hiring for roles where flexibility is key.

💡 Tip: If you offer any form of health benefits to part-time employees, you must comply with ACA nondiscrimination and coverage rules.

Also Read: How does Coinsurance Work in Medical Billing?

How to Offer Health Insurance to Part-Time Employees

If you’re an employer thinking about extending health benefits to part-timers, here’s a simple, practical roadmap:

Step 1: Check with Your Insurance Provider

Not all group health insurance plans allow part-time employees to be covered. Start by contacting your insurance provider or broker. If your current plan doesn’t include part-timers, ask for quotes from insurers that do.

Pro tip: When shopping for plans, mention that you want part-time eligibility included—it may influence your pricing options.

Also Read: How do I Enroll through the Health Insurance Marketplace?

Be Fair and Consistent

If you decide to provide coverage, you must apply the same rules across similar roles. Avoid offering benefits selectively (e.g., only to some part-timers). Consistency prevents discrimination claims and keeps your HR policies compliant.

Write your eligibility criteria into your employee handbook or benefits policy so there’s no confusion.

Set Clear Eligibility Rules

You have flexibility in deciding who qualifies. For example, you might offer health insurance to part-timers who:

• Work at least 10 hours per week,
• Work a minimum of 40 hours per month, or
• Are classified as part-time but maintain steady hours over 90 days.

Whatever standard you choose, make sure it’s documented and applied uniformly.

Monitor Participation Rates

Most insurance companies require a certain percentage of eligible employees to enroll in the plan (known as the participation rate). If too few people sign up, it could jeopardize your ability to maintain coverage.

Adding part-time employees can change that percentage—so monitor it closely and communicate regularly with your insurer.

What Is QSEHRA and Can Part-Timers Join?

If offering a traditional group plan isn’t financially practical, small employers might consider a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA).

A QSEHRA allows businesses with fewer than 50 full-time equivalent employees to reimburse workers (tax-free) for medical expenses and health insurance premiums.

Good news: Part-time workers can participate in a QSEHRA, as long as the employer chooses to include them and applies the same eligibility rules across the board.

This approach gives part-time staff more freedom—they can choose their own health plan through the Health Insurance Marketplace and get reimbursed for premiums.

📚 Learn more: IRS QSEHRA Guidelines (official resource)

Other Benefits Available to Part-Time Workers

Even if your employer doesn’t provide health insurance, part-time employees might still qualify for other valuable benefits. These can vary by state, company size, and length of employment.

Common Benefits Include:

Benefit	Description	Notes
Paid Sick Leave	Many states require employers to offer paid sick time, even for part-timers.	Rules vary by location.
Family and Medical Leave (FMLA)	Provides up to 12 weeks of unpaid, job-protected leave.	Applies if the company has 50+ employees and the worker has 1,250 hours logged.
Disability Benefits	Short-term disability required in states like CA, NY, NJ, HI, and RI.	Check local regulations.
Retirement Plans (401(k))	Employers may need to include part-timers under ERISA.	New SECURE Act 2.0 expands eligibility.

These benefits not only improve job satisfaction but can also make a small company more competitive when hiring.

Extra Perks to Attract Great Part-Time Talent

Health insurance isn’t the only way to show appreciation for your part-time workforce. Employers can offer a range of voluntary or supplemental benefits that improve loyalty and morale:

• Paid vacation and personal days
• Dental and vision insurance
• Tuition reimbursement programs
• Life and accidental death insurance
• Flexible Spending Accounts (FSAs) or Health Savings Accounts (HSAs)
• Wellness stipends or gym memberships

Offering even a few of these perks can make a business stand out—especially for roles that compete with large corporations for skilled labor.

✅ Example: Starbucks and UPS have long offered part-time benefits to improve retention. Small businesses can take a similar approach on a smaller scale.

Conclusion: Making Health Benefits Work for Everyone

While the law doesn’t require employers to offer health insurance to part-time workers, doing so can be a smart business move. It helps attract skilled employees, reduces turnover, and builds a stronger workplace culture.

For part-time workers, it’s important to explore all available options—from QSEHRA reimbursements to Marketplace coverage and state programs like Medicaid.

👉 Next Steps:

• Employers: Talk to your broker about part-time coverage or QSEHRA setup.
• Employees: Compare plans at HealthCare.gov or check your state’s marketplace for affordable options.

Also Read: When is the Open Enrollment Period for Health Insurance?

FAQs about Health Insurance for Part-Time Workers