General News

ACA Affordability Contribution Rate Set at 9.78% for 2020

General News|Aug 12, 2019

New Figure Marks Decrease from 2019

Under the employer shared responsibility (“pay or play”) provisions of the Affordable Care Act, applicable large employers—generally those who have 50 or more full-time employees (including full-time equivalent employees)—may be subject to a penalty if they do not offer affordable coverage that provides minimum value to their full-time employees and their dependents.
  
For plan years beginning in 2020, the Internal Revenue Service has announced that coverage will generally be considered affordable if the employee’s required contribution for the lowest-cost self-only health plan offered is 9.78% or less of his or her household income for the taxable year. For plan years beginning in 2019, the applicable percentage is 9.86%. 
 
Given that employers are unlikely to know an employee’s household income, they may use a number of safe harbors to determine affordability, including reliance on Form W-2 wages. 

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Jessica Cheney

Jessica Cheney

Jessica Cheney is the Vice President of Benefits for Arcwood Consulting. She is responsible for overseeing all aspects of our clients from quoting, onboarding, renewal, compliance and ensuring we are meeting and exceeding our client and company goals. Her vast knowledge of the industry and employers allows her to oversee the processes and ensure our clients’ needs are met. Jessica began her career in 1993 at BlueCross and BlueShield of Arizona and then joined Black Gould and Associates, a large general agency where she worked with carriers, agents and clients implementing and servicing large employers. Jessica joined Arcwood in 2005. In addition to holding her Accident/Health and Life Producer license she has the REBC (Registered Employee Benefits Consultant) designation and certifications in HIPAA (Privacy and Security), Benefits Account Management, Patient Protection and Affordable Care Act (PPACA), Self-Funding, Voluntary Worksite and Wellness. Jessica also serves as President on the board of the Greater Phoenix Association of Health Underwriters (GPAHU). Personally, Jessica, being an Arizona native enjoys outdoor activities such as hiking, biking, camping and attending sporting events with her family.