ACA & Affordability

Affordability percentage increased to 9.96% for plan years beginning in 2026

The IRS increased the ACA affordability percentage to 9.96% for plan years starting in 2026, meaning employers can charge employees more for the lowest cost self-only plan while still meeting affordability requirements. Applicable large employers must choose a safe harbor method and set contributions before the plan year begins, with 2026 FPL affordability set at $129.89 per month.

IRS finalizes instructions for ACA reporting (1094/1095-B & 1094/1095-C)

The IRS finalized 2025 ACA reporting instructions on October 30, 2025, confirming that employers no longer need to proactively distribute Forms 1095-B/C if they post a clear website disclaimer and provide the forms upon request (except for New Jersey residents, who must still receive them directly). The forms, codes, and deadlines remain unchanged—March 2, 2026, for furnishing forms to individuals and March 31, 2026, for electronic filing with the IRS. Employers should ensure compliance with the website disclaimer rules and verify their ACA reporting vendor contracts ahead of the 2026 reporting season.

ACA women’s preventive service updates for 2026

The Affordable Care Act (ACA) requires non-grandfathered health plans to cover a specific list of preventive health services in-network without cost-sharing to the plan participant. As ACA-required preventive service recommendations are updated, plan years starting one year after the new recommendation must cover those updated services in-network with no cost-sharing.

Nava ACA employer guide