Sarah Borders January 29, 2026 3 min read

2026 Federal Poverty Level Updated, Increasing FPL Affordability Safe Harbor

Purpose: Using the FPL safe harbor, a plan is considered affordable if the employee’s required monthly contribution for the lowest cost self-only plan that provides minimum value does not exceed a set percentage of the FPL (annually indexed).

Applies To:

  • An Applicable Large Employer (ALE) that sponsors a fully insured, self-insured, or level-funded medical plan or Individual Coverage Health Reimbursement Arrangement (ICHRA).
  • An employer is an ALE for calendar year 2026 based on averaging 50 or more full-time and equivalent employees in calendar year 2025.

FPL Affordability

Calendar Year 2026 Plan

Non-Calendar Year 2026 Plan

Mainland FPL

$15,650÷12×9.96%= $129.89/mo.

$15,960÷12×9.96%= $132.46/mo.

Hawaii FPL

$17,990÷12×9.96%= $149.31/mo.

$18,360÷12×9.96%= $152.38/mo.

Alaska FPL

$19,550÷12×9.96%= $162.26/mo.

$19,950÷12×9.96%= $165.58/mo.

 

 

avatar

Sarah Borders

Principal, Benefits Compliance Solutions. Sarah has spent the last 15 years in the employee benefits industry, has numerous designations and serves on NAHU’s Employer Working Group Subcommittee and is an active board member of Austin AHU. She recently stepped down as Vice President of Benefits Compliance at one of the nation's largest brokerage firms to start her own compliance consulting practice. Her designations include an active license with the Texas Department of Insurance, CEBS (Certified Employee Benefits Specialist), Certified Health Care Reform Professional, HIPAA certification and Health Care Service Associate. She holds an MBA from Texas A&M Corpus Christi and a BA from University of Incarnate Word. Her consulting firm, Benefits Compliance Solutions, partners with employers to identify unknown risks and avoid hundreds of thousands of dollars in fines and lawsuits from failure to comply with their healthplan obligations.

COMMENTS