IRS Increases ACA Employer Affordability Percentage for 2019

Generally, the Affordable Care Act (the ?Ç£ACA?Ç¥) requires coverage under a group health plan sponsored by an ?Ç£applicable large employer?Ç¥ (at least 50 full-time equivalent employees) to be ?Ç£affordable?Ç¥, as determined under the ACA, in order to avoid certain ACA penalties. ?Ç£Affordability?Ç¥ is based on whether the premium for employee-only coverage is less than a certain percentage of an employee?ÇÖs household income or a designated safe harbor amount. The IRS has increased the affordability percentage for 2019 to 9.86 percent, up from 9.56 percent in 2018.