Revenue Procedure 2025-25 has been released announcing the affordability threshold for the plan years beginning in 2026. 

Applicable large employers (ALEs) are required to offer minimum essential coverage, affordable and minimum value medical benefits to all full-time employees.  If the ALE fails to provide minimum essential coverage, affordable and minimum value medical benefits to full-time employers and their dependents they could be facing 4980H Penalties.

The current §4980H(a) penalty for not offering minimum essential coverage is $241.67/month ($2,900 annualized) multiplied by all full-time employees (minus the first 30).  This penalty would be triggered if at least one full-time employee was not offered minimum essential coverage and enrolled in subsidized coverage on the exchange.

The current §4980H(b) penalty for not offering minimum essential coverage; affordable coverage; and minimum value benefits is $362.50/month ($4,350 annualized) per full-time employee receiving subsided coverage on the Exchange.

Below is the summary of the ACA affordability thresholds over the past years.

• 2015 Percentage: 9.56%
• 2016 Percentage: 9.66%
• 2017 Percentage: 9.69%
• 2018 Percentage: 9.56%
• 2019 Percentage: 9.86%
• 2020 Percentage: 9.78%
• 2021 Percentage: 9.83%
• 2022 Percentage: 9.61%
• 2023 Percentage: 9.12%
• 2024 Percentage: 8.39%
• 2025 Percentage: 9.02%
• 2026 Percentage: 9.96%

Resources on Amwins Connect website:

• A Guide to 4980H Requirements and Penalties
• Employer Compliance Guide

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