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Applicable Large Employers (ALE's) that which to comply with the affordability provision of ACA must use the 9.56% rate for plan years beginning in 2018.  The rate for plan years beginning in 2017 is currently 9.69%.  A plan year is essentially the start of your contract at renewal.  So an employer with a medical plan renewal in April would have a plan year of 4/1/17 to 3/31/18 and the 9.69% rate would apply throughout the plan year.  9.56% would begin on 4/4/18 in this example.

 Below is an excerpt out of Rev. Proc. 2017-36 that addresses this (from page 2):

02 Section 36B Required Contribution Percentage for 2018. For plan years beginning in 2018, the required contribution percentage for purposes of § 36B(c)(2)(C)(i)(II) and § 1.36B-2T(c)(3)(v)(C) is 9.56%.

 

Please reach out to your GPI representative with any questions on this or any other ACA matter.

Posted 9:30 AM

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