How do I know if my employer-sponsored plan is considered affordable?

An employer-sponsored plan is considered “affordable” based on the percentage the employee is required to contribute to the premiums for self-only coverage. The employee should not have to contribute more than a certain “contribution percentage” of their total household Modified Adjusted Gross Income.

For 2024, the contribution percentage is 8.39% (this percentage will increase annually).

Your employer-sponsored plan must also provide “minimum value.” A health plan meets the minimum value standard if:
(1) It pays at least 60% of the total cost of medical services and
(2) Its benefits include substantial coverage of physician and inpatient hospital services.