Affordability and Open Enrollment

Posted by BAS - 15 October, 2020

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As open enrollment preparations begin for the 2021 plan year, it is important for employers to remember to offer a single-coverage affordable plan option. Applicable large employers (generally those with 50 or more full-time employees), must offer their full-time employees minimum essential health coverage providing minimum value that is affordable. Affordability is determined based on the lowest-cost-single-coverage plan. If coverage offered to employees is not affordable and if an employee purchases health coverage on the Exchange, the employer may be subject to a tax penalty.

In 2021, coverage will be considered affordable if it costs no more than 9.83% of an employee’s household income for the 2021 plan year. Employers who offer a payment to an employee who opts out of health coverage must also consider if that opt-out payment needs to be factored into affordability.

For information on BAS’ ACA data collection and reporting services, contact your account manager or solutions@BASusa.com.

Topics: Affordable Care Act, HR & Benefit Plans, MyEnroll360 News, HR & Benefits News


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