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    ACA COMPLIANCE - Affordability Percentages Will Increase for 2019

    Posted by Soules Insurance on Tue, Jun 5, 2018

    On May 21, 2018, the Internal Revenue Service (IRS) issued Revenue Procedure 2018-34 to index the contribution percentages in 2019 for purposes of determining affordability of an employer’s plan under the Affordable Care Act (ACA). 

    For plan years beginning in 2019, employer-sponsored coverage will be considered affordable if the employee’s required contribution for self-only coverage does not exceed:

    • 9.86 percent of the employee’s household income for the year, for purposes of both the pay or play rules and premium tax credit eligibility and
    • 8.3 percent of the employee’s household income for the year, for purposes of an individual mandate exemption (adjusted under separate guidance).
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    Tags: Health Insurance, Employers, Obamacare, ACA, Employees, ACA Compliance, Affordability Percentages, Percentage Increase