Summer is coming to an end and the last thing we all want to start thinking about right now are January renewals. However, as January 51+ renewals have already started to drop from some of the carriers, it’s the right time to address upcoming affordability percentages for our applicable large employer groups (ALEs). While we have been accustomed to the affordability percentage changing over the years to adjust for inflation, there is a drastic change for 2023. The percentage change will drop from 9.61% down to 9.12% for 2023. With this significant change, it’s important for groups to review their contribution strategies to make sure that they are compliant in advance of their 2023 renewals.

As a reminder, the definition of affordability is based on the single rate of the lowest cost plan option that the group offers.

If you have any groups that are looking for more information on available safe harbors or contribution strategies, please reach out with any questions and we can review further.

Please refer to the links below for additional information: