2024 ACA Affordability Threshold
The IRS has announced they are changing the health plan affordability threshold for 2024. This threshold is used to determine if an employer’s lowest-premium health plan meets the requirements under the Affordable Care Act (ACA). This requirement is for applicable large employers, which is generally an employer with 50 or more full-time or full-time equivalent employees.
Previously, this threshold was set at 9.12%, meaning the plan could not make the employee’s contribution exceed 9.12% of their household income for that year and still be considered affordable.
This number has now been set to 8.39%, meaning in order for a plan to be affordable under ACA requirements, the amount the employee contributes is lower than the previous year.
Employers should look at their benefits to make sure they are complying with the ACA. For more information about minimum value and affordability, you can find an IRS resource here.
Get day-to-day updates on 2024 ACA Affordability Threshold, visit the Vida HR Knowledge Center (Vida HR Clients Exclusive).