IRS Releases 2027 ACA Affordability Threshold: What Employers Need to Know
The IRS has announced Affordable Care Act (ACA) indexing adjustments for 2027. For plan years beginning in 2027, the required contribution percentage used to determine whether employer-sponsored health coverage is “affordable” under the ACA will be 10.22% (up from 9.96% for 2026). If the percentage of household income that certain employees must contribute to pay for their coverage is higher, applicable large employers (ALEs) could be subject to shared-responsibility penalties. ALEs should review employee contribution amounts for 2027 to help maintain affordability and reduce potential exposure to penalties. We’re here if you have questions.