What is the primary purpose of the Minimum Participation Rate (MPR) requirement?

The primary purpose of the Minimum Participation Rate (MPR) requirement is to promote group coverage for employees. This requirement ensures that a sufficient percentage of eligible employees participate in a group health plan, which helps balance the risk among participants. If there are too few participants, it can lead to higher costs for the insurance provider and for those enrolled in the plan, as there may not be enough pooled resources to effectively manage and spread the health risks. By encouraging a higher enrollment rate, the MPR fosters stronger group health insurance plans that can provide better coverage options and pricing for all participants involved. This ultimately aims to create a healthier workforce by making group health coverage more accessible and affordable.