The IRS has provided indexing adjustments for the applicable dollar amounts under Code Sec. 4980H(c)(1) and (b)(1). These indexed amounts are used to calculate the employer shared responsibility payments (ESRP). This guidance is is effective for tax years and plan years beginning after December 31, 2023.

Adjusted Items

The Department of Health and Human Services (HHS) published the premium adjustment percentage for 2024 on December 12, 2022, using the most recent National Health Expenditure Accounts (NHEA) income and premium data that was available at the time of publication. For calculation of the 2024 benefit year payment parameters, HHS used the NHEA Projections 2021-2030.

For calendar year 2024:

  • the adjusted $2,000 amount under Code Sec. 4980H(c)(1) is $2,970 ($2,000 x 1.4899877401 = $2,979.9754802 rounded down to $2,970), and
  • the adjusted $3,000 amount under Code Sec. 4980H(b)(1) is $4,460 ($3,000 x 1.4899877401 = $4,469.9632203 rounded down to $4,460).