Recent IRS updates to the Affordable Care Act (ACA) affordability percentage may lead to increased costs for employers in 2023. In Rev. Proc 2022-34, the IRS announced that the ACA affordability percentage for plan years beginning in calendar year 2023 will be 9.12%. This represents a .49% drop from the 2022 affordability threshold of 9.61%, which is a much more significant year-to-year change than in prior years.
The ACA affordability percentage affects whether the employer’s coverage satisfies one or more of the affordability safe harbors under the employer mandate regulations.
Employer Next Steps
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