Live Well, Work Well – September 2020
September 15, 2020
COVID-19 Policy Disputes With Customers
September 15, 2020
Affordability Percentages Will Increase for 2021
The IRS issued Revenue Procedure 2020-36 to index the contribution percentages in 2021 for determining affordability of an employer’s plan under the Affordable Care Act (ACA).
For plan years beginning in 2021, the ACA affordability contribution percentages increased slightly to:
- 83% under the pay or play rules
- 83% under the premium tax credit eligibility rules
- 27% under an exemption from the individual mandate
Although the individual mandate penalty no longer applies, some individuals may still need to seek this exemption for other purposes, such as eligibility for catastrophic coverage.
Employer Takeaways
The updated affordability percentages are effective for taxable plan years beginning Jan. 1, 2021. The slight increase in percentages from 2020 may provide some employers greater flexibility when setting employee contributions for 2021 plans.
Phoenix Insurance Group, Inc. is here to help discuss your options.
Preparing for an Unprecedented Open Enrollment Period
Open enrollment following the COVID-19 pandemic will be unlike any other in recent memory. Many organizations are still trying to recover from extended closures and maintain safe working environments—open enrollment is the last thing on their minds.
Yet, procrastinating on enrollment planning can actually cause more issues than it solves. From an operational standpoint, COVID-19 might surge in the fall and force states to reclose businesses. From a personnel standpoint, employees may not be comfortable returning if they feel unsafe in the workplace. That’s why it’s critical to start thinking about a safe enrollment right now.
*Provided by Phoenix Insurance Group, Inc.
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