The line moved. Your contribution strategy may not need to.
A higher percentage gives applicable large employers more room, but the right contribution depends on your pay structure, your safe harbor and your goals for take-up.
Treat the 10.22% as a ceiling to test against, not a target to reach. Send us your renewal and we will give you a second opinion in writing.
Three ways to use the new line.
Test by tier, not on average
Affordability is tested on self-only coverage, but your contribution strategy also shapes dependent cost and waiver rates. Review each tier before you decide.
Pick the safe harbor that fits your pay
Hourly and salaried workforces fit the rate-of-pay safe harbor, W-2 wages suit stable pay, and the poverty-line safe harbor is simplest. The test you can document is the test to use.
Do not spend the headroom by default
A higher ceiling does not mean employees should pay more. Employees who waive because of cost are a retention and take-up problem. See how to check your waiver rate.
Keep reading.
The 2027 ACA Affordability Percentage: Employer Guide
What the IRS changed for 2027 and what to check before open enrollment. Back to the guide.
Where these figures and rules come from.
Figures and rules
IRS Rev. Proc. 2026-26 (2027 affordability percentage of 10.22%, up from 9.96% for 2026) and Rev. Proc. 2026-22 (2027 employer shared responsibility payment amounts). 26 CFR §54.4980H-5(e)(2). This page is general information, not legal or tax advice.
Send us your renewal.
Four documents — the renewal letter, the plan summary, the contribution split by tier and enrolled counts by tier. We’ll come back with a competitive read, where we see opportunity, and the five questions we’d put to your carrier.
An independent employee benefits consulting firm. We look at the entire benefits program — cost, plan performance, risk and administration.
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