Affordability
Affordability Percentages Will Increase for 2024
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OVERVIEW
On Aug. 23, 2023, the IRS issued Revenue Procedure 2023-29 to index the contribution percentages in 2024 for determining the affordability of an employer’s plan under the Affordable Care Act (ACA).
For plan years beginning in 2024, employer-sponsored coverage will be considered affordable if the employee’s required contribution for self-only coverage does not exceed 8.39% of the employee’s household income for the year for purposes of the ACA’s pay or play rules. This is a significant decrease (down from 9.12% in 2023) and the lowest that this percentage has ever been set. As a result, some employers may have to lower their employee contribution for 2024 to meet the adjusted percentage.
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Judy Kamens
Compliance Specialist
Judy Kamens
Compliance Specialist
Judy joined the Employee Benefits division of Lawley in March 2010 as a Compliance Specialist. Judy’s role is to provide clients with enhanced service in the areas of new and existing legislation and compliance. She works closely with Employee Benefits Consultants and Account Executives to provide clients with the tools and information to remain compliant. Judy provides timely education, guidance and conveys the requirements and intricacies of new legislation in a practical fashion. Specifically, Judy has focused her attention on the Affordable Care Act (ACA) and possesses a thorough understanding of the continuously evolving requirements of this law.
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