Covers part of the difference between the actual healthcare costs and those covered by the Social Security – which already covers approx. 100% of all ‘serious’ healthcare costs and around 70% of’everyday’ healthcare costs. This is provided by private insurers with a variety of coverage levels/rates.This is compulsory coverage, with rates (fixed amount per month) and levels of coverage, determined by law and collective bargaining agreements.
As of 2016, it has become compulsory for employers to provide a private health insurance to complement the healthcare reimbursements of French Social Security.
Contrary to URSSAF, Pole Emploi and Pension funds, the rates are not determined by law, but by branch, through the collective bargaining agreement applicable to your activity branch.
In our Neteem PEO package
Under the SYNTEC collective bargaining agreement (applicable for all consulting companies), the default designated insurer is Malakoff Mederic (same as for life & disability)
As of January 1st 2016, Neteem provides the level of coverage set by the collective bargaining agreement. Due to the volume effect of this new compulsory benefit (Malakoff Mederic covers virtually all the Syntec branch companies), the cost is relatively low for the level of coverage it provides (47€/month in 2017 for coverage of employee and children, split 50/50 between employee and employer)
The children of the employee are automatically covered for that cost.
The employee can choose to register his spouse or partner as well and can also choose higher levels of coverage if need be, however the extra cost of these will be his sole responsibility (up to 77 €/month for option 2 coverage & spouse extension). The collection of the contributions for the options will go through payroll however, taken out of their net pay.
It is compulsory coverage, and thus must be proposed to any new employee.
However, there are a few cases when the employee can refuse the coverage (e.g. if they were in the company before 1/1/16, or if they are already covered by their spouse’s compulsory coverage and produce proof of this yearly, or if they are on a less than 12 mos. contract and don’t wish Neteem’s contract etc.)
Details of the levels of coverage and options/costs available can be downloaded here.
NB. France is considered to provide one of the best overall health care systems in the world, which is already covered by Social Security benefits. For example, if you are hospitalized or have a long-term ailment and are treated in one of the very good public hospitals or with a physician (widespread) who applies Social Security recommended rates, there will in fact be no cost left for a private healthcare plan to pick up.
This new benefit will mainly serve for the bits that are not so well reimbursed by Social Security (e.g. eye-wear / dental care / « everyday »/comfort medicine – e.g. for colds etc, for which reimbursement is not 100% – and extra costs above Social Security rates in private clinics, with physicians who go over SS rates)
This is why a private healthcare plan – despite being an additional cost – is not really expensive, the employer cost is only +23.50€/month in 2018.