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% 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% of the employee’s household income for the year, for purposes of an individual mandate exemption (adjusted under separate guidance).
These updated affordability percentages are effective for taxable years and plan years beginning Jan. 1, 2019. This is an increase from the affordability contribution percentages for 2018. As a result, some employers may have additional flexibility with respect to their employee contributions for 2019 to meet the adjusted percentage.
Refer to the below Compliance Bulletin for details and contact your NEEBCo representative with questions.