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.