📈 2026 ACA Pay-or-Play Affordability Percentage Increases to 9.96% 💸

On July 18, 2025, the IRS released Revenue Procedure 2025-25, raising the ACA affordability threshold for employer-sponsored health coverage to 9.96% for 2026.

👉 Under the Affordable Care Act’s “pay-or-play” rules, large employers must offer affordable, minimum-value health coverage to full-time employees — or face potential penalties.

🧾 New for 2026:

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🇺🇸 “One Big Beautiful Bill Act” Brings Big 💥 Changes to Employee Benefits

On July 4, 2025, President Donald Trump signed the One Big Beautiful Bill Act (OBBB Act) into law. This major legislation includes a variety of updates to employee benefit plans — most of which take effect in 2026.

🔑 What’s New for Employees & Employers:

🖥️ Telehealth Just Got Easier

HDHPs can permanently cover telehealth and remote care before deductibles — without affecting HSA eligibility.

💳 HSA Expansion

Starting in 2026:

• Individuals with Direct Primary Care (DPC) can now contribute to HSAs if fees are under $150/month.
• Bronze & catastrophic ACA plans will count as HDHPs, expanding HSA eligibility.

👶 Bigger Dependent Care FSA Limits

Starting in 2026:

• Limits increase to $7,500 (joint filers) and $3,750 (separate).
• Helps working families save more on childcare tax-free.

🎓 Student Loan Repayment Help = Permanent

Employers can keep helping pay student loans through educational assistance programs beyond 2025.

• 💵 Up to $5,250/year stays tax-free.
• That limit will grow with inflation starting in 2027.

🍼 Introducing “Trump Accounts” for Kids

A new tax-advantaged savings account for children under 18:

• Contribute up to $5,000/year (tax-deferred).
• Employers can pitch in up to $2,500/year, tax-free.
• 🎁 Kids born 2025–2028 may get a $1,000 bonus from the government!

Have any more questions? Give us a call at 520-721-4848

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