Protecting Your Clients from ACA Penalties: Strategies for Affordability
This week we want to address the affordability criteria and the potential penalties that your clients may face. The IRS is issuing 226J penalty letters, and as an employee benefit advisor, it's your responsibility to help your clients navigate these challenges.
In 2024, the affordability threshold for employer-sponsored health coverage under the Affordable Care Act (ACA) is 8.39% of an employee's household income. This means that for the health insurance offered by an employer to be considered affordable, the employee's share of the premium for the lowest-cost self-only coverage that meets the minimum value standard cannot exceed 8.39% of their household income.
This can be particularly problematic for blue-collar companies with lower-income employees, as the employer may struggle to afford their portion of the percentage, and the employees themselves may find the offered benefits unaffordable.
When faced with this situation, some employers may choose not to offer benefits at all, which puts them in a position that the IRS loves to target. As an employee benefit advisor, it's essential to develop a strategy to protect your clients from these risks.
This is where Evolved Benefits comes in. We offer minimum essential coverage plans, plans that meet minimum value, and other strategies designed to safeguard your clients from affordability assessments that can lead to 226J penalty letters.
We specialize in providing the most affordable ways to protect your clients, especially those with low-income employees and limited budgets. Our tailored solutions ensure that your clients can meet their ACA obligations without breaking the bank.
As a trusted partner, Evolved Benefits is here to help you navigate the complexities of ACA compliance. We encourage you to reach out to us via LinkedIn, email, or phone to discuss your clients' specific needs.
Don't let the threat of ACA penalties keep you or your clients up at night. With Evolved Benefits by your side, you can rest assured that you have the strategies and support needed to protect your clients and help them thrive in today's challenging healthcare landscape. Let's work together to find the right solutions for your clients and ensure their long-term success.