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Increased ACA Affordability Percentages for 2021

July 21, 2020


Last week, on July 21, 2020, the IRS released Rev. Proc. 2020-36, which announced the 2021 indexing adjustments for two important percentages under the Affordable Care Act (ACA).




Action Items. ALEs should take steps to develop their contribution strategy for 2021, including determining the affordability safe harbor that works best for their plan. The higher 2021 affordability percentage means that employers will be able to charge employees a slightly increased price for their health coverage. For example, employers who use the Federal Poverty Line (FPL) safe harbor can increase the affordable employee contribution amount from $101.79 per month (2020) to $104.52 per month in 2021.



This Benefits Bulletin is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice.


Posted by in Blog, Health & Benefits, Human Resources

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