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The U.S. Department of Health and Human Services (HHS) updates federal poverty levels (FPLs) annually to determine eligibility for programs and benefits. The 2024 FPL for an individual is $15,060 in the 48 contiguous states and the District of Columbia, and $18,810 and $17,310 for Alaska and Hawaii, respectively.FPLs impact applicable large employers (ALEs) under the Affordable Care Act's pay-or-play rules by determining affordability of health plan coverage and eligibility for premium tax credits. ALEs are liable for a penalty if their full-time employees receive premium tax credits through a Marketplace. Individuals are ineligible for credits if they have affordable, minimum-value health coverage through their employer, regardless of income meeting FPL guidelines.
Employers may want to confirm health coverage affordability before the start of each plan year to avoid penalties. ALEs using FPL safe harbor to determine affordability should use the FPL guidelines within six months of the plan year start. Calendar year health plans should use the 2023 FPL guidelines for the 2024 plan year, while non-calendar-year health plans can use the new 2024 FPL guidelines. Download the bulletin for more details.
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