ACA Affordability Percentage Will Decrease For 2020

On July 23, 2019, the IRS issued Revenue Procedure 2019-29 to index the contribution percentages in 2020 for determining affordability of an employer’s plan under the Affordable Care Act (ACA). For plan years beginning in 2020, employer- sponsored coverage will be considered affordable if the employee’s required contribution for self-only coverage does not exceed:

9.78% of the employee’s household income for the year, for purposes of both the pay or play rules and premium tax credit eligibility; and

8.24% of the employee’s household income for the year, for purposes of an individual mandate exemption (adjusted under separate guidance). Although this penalty was reduced to zero in 2019, some individuals may need to claim an exemption for other purposes.

For more information on how this may impact your company-sponsored Health Plan, give us a call at (520) 721-4848.

President Trump Signs Executive Order

Earlier today, President Trump signed an Executive Order (EO) in an attempt to improve access, increase choices and lower costs for healthcare.

What Is in the EO?
The EO directs the Secretary of Labor to consider proposing regulations or revising guidance to expand Association Health Plans. The intent of this directive is to allow employers in the same line of business anywhere in the country to join together to offer healthcare coverage to their employees. It could potentially allow employers to form AHPs through existing organizations, or create new ones for the express purpose of offering group insurance. This could lead to the sale of (more…)