March 2026
Deanna Sizemore, Associate Director, Benefits Compliance
On January 13, 2026, the Department of Health and Human Services (“HHS”) issued the 2026 federal poverty level (“FPL”).
Effective January 13, 100% of the FPL is $15,960 (up from $15,650 in 2025) for a person working in the mainland U.S. ($19,950 for a person working in Alaska and $18,360 for a person working in Hawaii). Under the Affordable Care Act (“ACA”), the FPL can affect employer play-or-pay calculations. Specifically, for the FPL safe harbor, contributions are based on 100% of the single FPL in effect 6 months prior to the start of the plan year. That means that group health plans with August 1 – December 1, 2026, Plan Years will generally calculate unaffordability based on 9.96% of the recently released FLP of $15,960, which is $132.47.
Note that the unaffordability percentage applies on a plan-year basis (not calendar year). For calendar year plans the calculations are:
| January 1, 2025 Plan Year | January 1, 2026 Plan Year | January 1, 2027 Plan Year | |
|---|---|---|---|
| Unaffordable % | 9.02% | 9.96% | TBD |
| 100% FPL | $15,060 | $15,650 | $15,960 |
| FPL Safe Harbor | $113.20 | $129.90 | TBD |
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