The IRS has issued indexing adjustments for the applicable dollar amounts under Code Sec. 4980H(c)(1) and (b)(1), which are used to determine the employer shared responsibility payments (ESRP). This updated guidance is effective for taxable years and plan years beginning after December 31, 2026.
Adjusted Items
The Department of Health and Human Services (HHS) published the premium adjustment percentage for 2027 on January 29, 2026. This figure was calculated using the most recent National Health Expenditure Accounts (NHEA) data available, specifically the NHEA Projections 2024–2033. The premium adjustment percentage for 2027 is based on the ratio of projected per enrollee premiums for private health insurance in 2026 ($8,919) to those in 2013 ($4,715), yielding a premium adjustment percentage of 1.8916224814.
Accordingly, for calendar year 2027:
the adjusted $2,000 amount under Code Sec. 4980H(c)(1) is $3,780 ($2,000 x 1.8916224814 = $3,783.2449628, rounded down to $3,780), and
the adjusted $3,000 amount under Code Sec. 4980H(b)(1) is $5,670 ($3,000 x 1.8916224814 = $5,674.8674442, rounded down to $5,670).
