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.
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