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Affordable coverage

In 2024, a job-based health plan is considered "affordable" if your share of the monthly premium in the lowest-cost plan offered by the employer is less than 8.39% of your household income.
  • The lowest-cost plan must also meet the minimum value standard.
  • If youโ€™re the employee, affordability is based on only the premium youโ€™d pay for self-only (individual) coverage.
  • For coverage starting January 1, if youโ€™re offered job-based coverage through a household memberโ€™s job, affordability is based on the premium amount to cover everyone in the household.
  • Total household income includes incomes from everybody in the household whoโ€™s required to file a tax return.
If the premiums arenโ€™t considered affordable for the employee and the household, they may qualify for savings in a Marketplace plan. But, if the premium is considered affordable for the employee, but not for other members of the household, then only the other household members may qualify for savings.
Example:
  • Householdโ€™s monthly income = $4,083 (about $49,000 per year).
  • 8.39% of the householdโ€™s monthly household income = $343
For the employee:
  • Monthly premium the employee would have to pay for the lowest-priced plan that covers just the employee = $300
  • Is the plan affordable for the employee? YES. The premium the employee would have to pay to cover just themselves ($300) is less than 8.39% of the householdโ€™s income ($343). Because the job-based coverage is affordable for the employee, the employee wonโ€™t qualify for savings in the Marketplace.
For other household members:
  • Monthly premium the employee would have to pay for the lowest-priced plan that covers other members of their household = $450
  • Is the plan affordable for other household members? NO. The premium the employee would have to pay to cover others in the household ($450) is more than 8.39% of the householdโ€™s income ($343). Because the job-based coverage isn't affordable for the employeeโ€™s household members, the employeeโ€™s household members may qualify for savings in the Marketplace.

Related content

  • Get tips before accepting job-based coverage
  • How to estimate your household income