2026 LARGE EMPLOYER CHANGES

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ACA Compliance Alert: 2026 Affordability Percentage for Employer Health Plans

At R.J. Blanchard Benefit Services, we put compliance first to protect your business from costly penalties and regulatory pitfalls. The IRS has announced the new ACA affordability threshold for 2026—here’s what you need to know:

2026 Affordability Percentage:

Employer-sponsored health coverage is considered “affordable” if the employee’s share of the lowest-cost self-only coverage does not exceed 9.96% of their household income.

Why This Matters:

Applicable Large Employers (ALEs) with 50 or more full-time employees must offer at least one plan that meets this standard. Failing to do so can result in significant ACA penalties.

Example:

Employee household income: $40,000/year ($3,333/month)

9.96% × $3,333 = $332/month (maximum affordable monthly premium)

What Employers Should Do:

Review your 2026 health plan options and employee premium contributions.

Confirm at least one plan option meets the 9.96% threshold for all full-time employees.

Keep detailed records of your plan offerings and affordability calculations.

Our Commitment:

We’re compliance-driven—monitoring all regulatory changes and providing proactive guidance to keep your business protected.

Need Help?

Contact us for assistance with ACA compliance, plan selection, or employee communications