The Internal Revenue Service (IRS) issued Revenue Procedure 2018-34 to index the contribution percentages in 2019 for purposes of determining affordability of an employer’s plan under the Affordable Care Act (ACA). For plan years beginning in 2019, employer-sponsored coverage will be considered affordable if the employee’s required contribution for self-only coverage does not exceed 9.86% of the employee’s household income for the year.

This updated affordability percentage is effective for plan years beginning January 1, 2019. This is a significant increase from the affordability contribution percentages for 2018 (9.56%). As a result, some employers may have additional flexibility with respect to their employee contributions for 2019.

 
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