In late August the IRS announced changes to the 2024 health plan affordability threshold. [See IRS Rev. Proc. 2023-29.] This is the measure used to determine if an employer’s lowest-premium health plan meets ACA affordability requirements.
The 2024 threshold will be 8.39% of an employee’s household income. That is significantly down from this year’s 9.12% and the lowest threshold since the ACA was implemented. [See Society for Human Resources Management.]
What does that mean for your company’s TY2024 ACA compliance?
For 2024 calendar-year plans using the Federal Poverty Line (FPL) affordability safe harbor, the required employee contribution now cannot exceed 8.39% of the FPL. That means a maximum of $14,580 for mainland US or $101.94 per month, down from $103.28 in 2023. For employees working in Alaska, the rate is $127.31 per month; and in Hawaii, $117.25 per month.
Contact BENEFITSCAPE for help reviewing and processing the impact of this IRS change on your company’s ACA compliance and filings.