FPL Index for 2023

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 2023 plans have known for several months that to be FPL affordable, they should charge employees no more than $103.25 per month for the lowest-cost single plan that provides minimum value.  However, plans renewing after January 1, 2023, are stuck waiting for the new year’s FPL to be updated in late January before they can know their FPL affordability threshold.

The 2023 federal poverty guidelines have now been announced at $14,580.  This means plans renewing February 1, 2023, or later can be FPL affordable if they charge employees no more than $110.80 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 2022 and 2023.

Plan year on/after Single FPL Affordability Percentage FPL Affordability for Single MV Plan
1/1/22 $12,880 9.61% $103.14/mo
2/1/22 $13,590 9.61% $108.83/mo
1/1/23 $13,590 9.12% $103.28/mo
2/1/23 $14,580 9.12% $110.80/mo

 

While every effort has been taken in compiling this information to ensure that its contents are totally accurate, neither the publisher nor the author can accept liability for any inaccuracies or changed circumstances of any information herein or for the consequences of any reliance placed upon it. This publication is distributed on the understanding that the publisher is not engaged in rendering legal, accounting, or other professional advice or services. Readers should always seek professional advice before entering any commitments.


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