By clicking “Accept All Cookies”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. View our Privacy Policy for more information.
5 min read

ACA Affordability Threshold Increases to 9.02% for 2025

Written by
Stacy Edgar
Published on
September 17, 2024
Est read time
5 min read

For 2025, an employee’s health insurance cannot exceed 9.02% of their household income. This is up slightly from 2024's ACA Affordability threshold of 8.39%.

How does the 2025 ACA affordability requirements impact employers?

If your business employees 50 or more full-time equivalent (FTE) employees, you are required by the Affordable Care Act to provide "Minimum Essential Coverage." This coverage cannot cost more than 9.02% of an employees' household income. The IRS offers multiple methodologies for an employers to prove they've met ACA Affordability requirements (aka, "Safe Harbors"). Every year, employers file a 1094/1095-C to the IRS to confirm they've met these requirements.

How does the 2025 ACA affordability requirements impact employees?

ACA Affordability establishes the maximum amount that individuals must pay for their health insurance premiums. If you find yourself paying more than 9.02% of your household income on health insurance premiums, you may have the option of declining your employers plan, purchasing a plan on Healthcare.gov (or your state's health insurance exchange), and qualifying for Advanced Premium Tax Credits (aka, "Obama Care subsidies). APTCs lower your monthly premium costs to as little as $1 per month.

ACA Affordability and ICHRA

The ACA Affordability Requirements determine the minimum amount of funding an employer must provide their employees under an ICHRA. Curious how this new requirement impacts you? Our team can walk you through the regulation and make sure your ICHRA funding strategy is ACA-compliant.

What is Venteur

Explore the best human-first Health Insurance platform

Icon: Workflows

Simple, personalized health benefits

Sign up in minutes, define your contribution, and let your employees choose the health plan that works right for them

Icon: Broker

Integrations to make everything run smoothly

We'll connect with your payroll and finance systems to make deductions and premium payments seamless

Icon: Marketplace

Easy onboarding and off-boarding

In just a few clicks, add your roster and make updates on the fly. We'll handle it from there.

Icon: communications

Venteur Certified Brokers to help your employees pick the right plan

Our trusted brokers ensure the best outcomes for employees and employers by unlocking health savings and providing unrivaled plan options.

Icon: AI

AI-powered plan recommendations to give you confidence while you shop

Backed by 30 years of healthcare data, Venteur’s AI helps employees compare and choose the best plan for their unique situation.

Icon: Rocket

Compliance and reporting because no-duh!

Venteur manages plan administration, reporting, and compliance so you can focus on growing your business.