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ARTICLE · 22 NOVEMBER 2021

New Health Plan Requirements And Other Updates

Kelley Drye & Warren LLP
Kelley Drye & Warren LLP
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Kelley Drye & Warren LLP

Kelley Drye & Warren LLP

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This Advisory provides a summary of recent developments impacting Affordable Care Act ("ACA") requirements applicable to employers, as well as other recent changes impacting employer-sponsored health

United StatesEmployment and HR

This Advisory provides a summary of recent developments impacting Affordable Care Act ("ACA") requirements applicable to employers, as well as other recent changes impacting employer-sponsored health plans.

ACA Affordability Threshold Decrease

Employer-sponsored health plans will satisfy the ACA affordability requirement in 2022 only if the lowest-cost, self-only coverage option offered under the plan does not exceed 9.61% of an employee's household income, down from 9.83% in 2021. This means that a plan that was affordable in 2021 may not be in 2022, even without any increase in premiums. Employers should confirm that their health plans will remain affordable for the 2022 plan year under the new lower threshold.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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