News
ACA Affordability Percentages Increased for 2016
Posted 03.03.15
For 2014, employer-sponsored coverage was generally considered to be affordable under the pay or play rules if the employee’s required contribution for self-only coverage did not exceed 9.5% of the employee’s household income for the year.
This required contribution percentage was adjusted to 9.56% for 2015 and 9.66% for 2016. However, employers using an affordability safe harbor under the pay or play rules will continue using a contribution percentage of 9.5% to measure their plan’s affordability.
The affordability test applies only to the portion of the annual premium for self-only coverage, and does not include any additional cost for family coverage.