Many applicable large employers (ALEs) utilize the federal poverty line (FPL) affordability safe harbor to avoid penalties under the Affordable Care Act (ACA). Calendar year 2022 plans have known for several months that to be FPL affordable, they should charge employees no more than $103.14 per month for the lowest-cost single plan that provides minimum value. However, plans renewing after January 1, 2022, are stuck waiting for the new year’s FPL to be updated in late January before they can know their FPL affordability threshold.
The 2022 federal poverty guidelines have now been announced at $13,590. This means plans renewing February 1, 2022, or later can be FPL affordable if they charge employees no more than $108.83 per month for the lowest-cost single plan that provides minimum value. If an employer is reaching the point they need to charge employees more than that, then they’d evaluate whether the amount they’d like to charge can meet another affordability safe harbor, such as the rate of pay safe harbor.
Below is a table of FPL affordability thresholds for 2021 and 2022.
| Plan year on/after | Single FPL | Affordability Percentage | FPL Affordability for Single MV Plan |
| 1/1/21 | $12,760 | 9.83% | $104.52/mo |
| 2/1/21 | $12,880 | 9.83% | $105.50/mo |
| 1/1/22 | $12,880 | 9.61% | $103.14/mo |
| 2/1/22 | $13,590 | 9.61% | $108.83/mo |
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