Health Insurance Costs
What is the ACA affordability test?
The ACA affordability test determines whether employer-sponsored health insurance is affordable. In 2026, employer coverage is considered affordable if the employee's share of the premium for self-only coverage does not exceed 9.02% of the employee's household income. If coverage is not affordable, the employee may be eligible for a premium tax credit.
Key Points
- Affordability test: employer coverage is affordable if self-only premium is 9.02% or less of household income (2026)
- If coverage is not affordable: employee may be eligible for premium tax credit
- Affordability is based on self-only coverage, not family coverage
- An independent agent can help you evaluate your employer's plan affordability
- If employer plan is not affordable: compare ACA marketplace plans