Short answer: The FPL safe harbor makes ACA affordability simple: coverage is affordable if the required self-only contribution doesn’t exceed 9.96% (for 2026) of the federal poverty line for one person, divided by 12, a flat amount of about $129.89 per month for 2026.
The Federal Poverty Line (FPL) safe harbor is one of the three IRS-approved methods employers can use to determine whether coverage is “affordable” under the ACA employer mandate. It is the simplest and most conservative option, producing a single flat maximum premium that works for every full-time employee.
To use it, the employee’s required monthly contribution for self-only coverage must not exceed 9.96% (for 2026) of the applicable federal poverty line for a single individual, divided by 12.
For 2026 plan years, employers use the 2025 mainland FPL for one person, $15,650. So the maximum affordable monthly contribution is:
$15,650 × 9.96% ÷ 12 = $129.895, rounded down to $129.89.
If the employee’s required premium is $129.89 or less per month, the coverage is automatically treated as affordable, with no need to calculate income or track wages. (Employers may use the most recent FPL figure published at least six months before the plan year begins, which is why a 2026 plan uses the 2025 guideline.)
Sources
Sources
5,650 for one person in the 48 contiguous states and DC
federalregister.gov/documents/2025/01/17/2025-01377/annual-update-of-the-hhs-poverty-guidelines