Updated ACA Affordability Calculator Available

September 09, 2021 • Cheryl Hoover

Updated ACA Affordability Calculator Available

The updated ACA Affordability Calculator for Texas school districts is available in the HR Library (member login required).

The calculator can be used to ensure districts offer health coverage that is affordable according to the Affordable Care Act (ACA). This school year, employers must offer a health insurance plan with a premium that costs no more than 9.61 percent of an employee’s income after the monthly district and state contributions are deducted.

The Internal Revenue Service (IRS) annually adjusts the affordability threshold by considering the ratio of premium growth to income growth in the preceding calendar year. The 2022 affordability percentage dropped below the 2021 percentage of 9.83 mainly due to a drop-off in the use of nonemergency health care services as cases of COVID-19 surged.

Using the calculator is an easy way for districts to ensure they are complying with the ACA affordability rules. The calculator will determine the lowest hourly rate a full-time employee can be paid for insurance to be affordable. For example, an employee working in a district participating in TRS-ActiveCare who receives the minimum required premium contribution of $225 per month must be paid at least $15.37 per hour.

For more information on ACA see:

Contact HR Services at hrservices@tasb.org or 1.800.580.7782 if you have questions.

Cheryl Hoover is an HR consultant at TASB HR Services. Send Cheryl an email at cheryl.hoover@tasb.org.

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Tagged: ACA, "Affordable Care Act", Benefits, Compensation