Affordability Percentages Will Decrease for Large Employer Group Health Plans in 2022

The IRS announced that the ACA’s affordability contribution percentages for 2022 will decrease significantly—to 9.61% from the current limit of 9.83%. Consequently, large employers may have to adjust their employee contributions so plans remain affordable. This affordability percentage is significant under the ACA employer mandate pay-or-play rules. For a large employer (with 50 or more full-time employees) to avoid a potential penalty, it must offer at least one minimum value coverage plan.

You may have already received a letter regarding this change from the IRS.

As health insurance rules and regulations frequently change, it’s important for large employers to stay up to date on their compliance.

This ACA Compliance Bulletin provides an overview of the ACA Affordability requirement.