Level Funded Health Plans: Unveiling 5 Game-Changing Benefits
Level Funded Health Plans represent a modern approach to healthcare coverage for businesses. These plans involve employers paying a predetermined monthly amount to cover their
The Internal Revenue Service (IRS) recently issued Rev. Proc. 2023-29 which includes information about the changes to the affordability percentage as it relates to the Employer Mandate for 2024.
The Notice also includes information about the 2024 advanced premium tax credits available for eligible individuals who purchase coverage through a state or federal Marketplace.
As it relates to the Employer Mandate, an offer of coverage will be considered affordable in 2024 if the employee has to pay no more than 8.39% of their household income for the lowest cost, self-only coverage plan. This is a decrease from the 2023 percentage which is 9.12%.
As most employers don’t know the household income of their employees, employers may continue to rely on the three safe harbors available when determining affordability of coverage (W-2 safe harbor, Rate of Pay safe harbor, Federal Poverty Level safe harbor).
There will be no changes to the advanced premium tax credit calculations. For 2021 through 2025, the American Rescue Plan Act of 2021 (ARPA) and the Inflation Reduction Act of 2022 (IRA) removed the income limit to qualify for an advanced premium tax credit and increased the amount of the advanced premium tax credit at all income brackets.
The most that an eligible individual or family will have to pay for the second-lowest priced silver plan on the Marketplace will range from 0% to 8.5% of their household income according to the following table:
Household income relative to the Federal Poverty Level | Initial Percentage | Final Percentage |
---|---|---|
Less than 150% | 0% | 0% |
150% – 200% | 0% | 2% |
200% – 250% | 2% | 4% |
250% – 300% | 4% | 6% |
300% – 400% | 6% | 8.5% |
400% and higher | 8.5% | 8.5% |
Level Funded Health Plans represent a modern approach to healthcare coverage for businesses. These plans involve employers paying a predetermined monthly amount to cover their
As it relates to the Employer Mandate, an offer of coverage will be considered affordable in 2024 if the employee has to pay no more than 8.39% of their household income for the lowest cost, self-only coverage plan.
It’s hard to believe that another Health Insurance Marketplace (Marketplace) open enrollment period is quickly
approaching. Here are some important dates to remember.
IXSolutions brings over 30 years of combined experience to the market as Employee Benefits Consultants. We’ve been bringing creative solutions and alternatives to the market since the inception of the Affordable Care Act.
Today, we work with companies, individuals, and Medicare eligible individuals to provide solutions to the complex insurance industry. We are a trusted partner to thousands of clients, brokers, and associations across the country.