From the Hotline: Employer Shared Responsibility and Lowest Cost Plan

Question: Is affordability under the Employer Shared Responsibility mandate based on the lowest cost plan?

Answer: Yes. According to the final regulations: “In order to avoid a potential assessable payment under section 4980H(b), the coverage offered must be affordable, generally meaning that the employee portion of the self-only premium for the employer’s lowest cost coverage that provides minimum value (MV) does not exceed 9.5 percent of the employee’s household income (as determined under safe harbor rules).”

Source: http://www.gpo.gov/fdsys/pkg/FR-2014-02-12/pdf/2014-03082.pdf