The affordability percentage under the Affordable Care Act (ACA) has been set at 9.02% in 2025, marking a significant increase from 8.39% in 2024. This raised threshold for affordable health insurance provides employers with the opportunity to slightly increase employee premium contributions, while still adhering to the ACA’s compliance guidelines. This seemingly minor, but impactful change can help alleviate some of the financial burden faced by employers, especially those required to provide health insurance.
Employers who are currently negotiating their new medical plans should take this into consideration. This change could potentially offer more flexibility in plan design and cost-sharing strategies.
To highlight the impact, consider this example: In 2024, an employer offering a plan that met the Federal Poverty Level (FPL) affordability under the ACA had a maximum employee contribution for single coverage of $101.94. In 2025 this limit increases to $113.20, providing employers with a strategic advantage to their bottom line.
It is crucial for employers to be proactive and factor in these changes as they consider making budgetary adjustments and as they go into negotiations for new medical plans.

This blog is up to date as of May 2025 and has not been updated for changes in law, administration, or current events.
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