ACA Affordability Percentage Increases for 2027

The IRS has announced an increase to the Affordable Care Act (ACA) affordability percentage for plan years beginning in 2027. The percentage will rise from 9.96% in 2026 to 10.22% in 2027.

Under the ACA’s employer mandate, applicable large employers generally must offer full-time employees health coverage that meets certain affordability and minimum value requirements. For 2027, coverage is considered affordable under the household income standard when the employee’s required contribution does not exceed 10.22% of household income.

Employers preparing for 2027 benefit plan years should be aware of the updated percentage as they review employee contributions and health coverage options.

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