Employer XYZ provides health insurance to all full-time employees after they have satisfied a 30-day waiting period. Employees are asked to pay $300 per month [on a pre-tax basis] toward the cost of employee-only coverage. Employer XYZ also provides employees with an 'opt-out' option. If an employee declines coverage because they receive coverage under the plan of a spouse [for example], then that employee would receive an additional $100 per month in salary. The ACA states that employers must offer healthcare coverage to employees on an 'affordable basis'- basically defined as what employees must 'pay' to receive healthcare coverage. What are the eligibility conditions to receive health insurance from Employer XYZ? What examples of a Section 125 plan [if any] are illustrated in this example? What impact [if any] does this 'opt-out' provision have on the ability of this employer to offer 'affordable coverage' as per the ACA