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The U.S. Department of Health and Human Services (HHS) annually updates federal poverty levels (FPLs) to determine program eligibility. For 2025, the FPL is $15,650 for individuals in the contiguous U.S. and D.C., and $19,550 for Alaska and $17,990 for Hawaii.
FPLs may affect an applicable large employer’s (ALE) liability under the Affordable Care Act's "pay-or-play" rules by determining health plan affordability and eligibility for premium tax credits. An ALE faces penalties only if a full-time employee receives a premium tax credit, which they can't get if eligible for affordable employer coverage.
To avoid pay-or-play penalties, ALEs must ensure their health coverage is affordable before each plan year. ALEs using the FPL safe harbor for affordability must apply FPL guidelines effective within six months before the plan year starts. For calendar-year plans, apply the 2024 FPL guidelines for 2025; non-calendar plans can use 2025 guidelines. Download the bulletin for more details.
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