Pay or Play Affordability Percentage Will Decrease for 2024

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On August 23, 2023, the IRS issued Revenue Procedure 2023-29 to index the contribution percentage 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 under the ACA’s pay or play rules if the employee’s required contribution for self-only coverage does not exceed 8.39% of their household income for the year.

For more information, check out this article.

You can also review this newsletter by legal expert and health insurance lawyer Marilyn Monahan.