Updated guidelines set the 2021 federal poverty level (FPL) at $12,880 — up from $12,760 in 2020 — for a person living in the mainland US, but $14,820 in Hawaii and $16,090 in Alaska. Under the Affordable Care Act (ACA), the FPL can affect employer shared-responsibility (ESR) assessments in two ways:
2021 FPL affordability safe harbors. The Department of Health and Human Services (HHS) annually adjusts the FPL to reflect the year-to-year increase in the Consumer Price Index for All Urban Consumers. HHS issued 2021 FPL figures effective Jan. 13, so employers with calendar-year plans can’t rely on the higher FPLs for 2021 affordability testing. Instead, calendar-year plan sponsors must use the 2020 FPL amounts. As a result, the 2021 FPL safe-harbor monthly employee contribution limits for the lowest-cost, self-only MEC with minimum value: