What is affordable coverage?

Affordable coverage under the ACA means that the employee’s required contribution for self-only coverage (meaning the amount to acquire coverage for only oneself, and not the cost for dependents) does not exceed a certain percentage of their household income.

Plan Year BeginningAffordability Percentage
20179 .69%
20189 .56%
20199 .86%
20209 .78%
20219 .83%


All of the plans offered by the employer do not have to meet this affordability threshold — for purposes of the ACA we just look at the self-only employee contribution for the "best plan" that was offered.

Safe Harbors

Because most employers won’t have access to their employees’ actual household incomes, the IRS provides three “safe harbor” methods that can be used to estimate income using information that employers do have. Learn more about those safe harbors by clicking the links below:

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