HHS Releases 2026 Federal Poverty Rates for ACA Affordability Calculations

The Department of Health and Human Services (HHS) has announced the federal poverty rates that will apply for purposes of calculating ACA affordability for employers who rely on the federal poverty level safe harbor. Applicable large employers (ALEs) must offer health insurance that costs less than 9.96% of an employee's household income for 2026. Because employers don't always know an employee's household income, they're permitted to rely on one of several safe harbors when determining whether the coverage they have offered is affordable. Employers may use the federal poverty rate that is in place six months before the beginning of the plan year. For more information on the impact of the federal poverty guidelines for premium tax credit purposes, visit Tax Facts Online. Read More: Link to Q8849. Note: Q is updated.