Compliance News Week Ending September 13, 2024

In this Article:

2025 ACA Affordability Percentage Announced

ERISA Celebrates its 50th Anniversary

IRS Releases 2025 ACA Affordability Percentage

On September 6, 2024, the Internal Revenue Service (IRS) released Rev Proc. 2024-35 announcing the Affordable Care Act (ACA) affordability percentage threshold for plan years beginning January 1, 2025.

This percentage is adjusted every year for inflation. For plan years beginning January 1, 205, the affordability percentage has increased to 9.02% (was 8.39% for 2024).

Happy 50th, ERISA! Why Should Brokers Care? Because It's Still Running The Show

The Employee Retirement Income Security Act (ERISA) just hit the big 5-0, and while it might not have a social media account, it’s still a heavyweight in the health insurance world. Originally aimed at protecting pensions, ERISA’s last-minute switch to also include health benefits has kept health insurance brokers on their toes ever since.

The Birth of ERISA: A Legendary Postscript

ERISA was born in 1974, during an era when bell-bottoms were cool and "Jaws" was making everyone afraid of the beach. President Gerald Ford signed it into law, mainly to prevent pension disasters like the one that hit the Studebaker workers back in the '60s. But here’s the kicker—at the last second, health benefits were tacked onto the bill, making ERISA the unexpected godfather of health insurance regulation. Think of it as the plot twist no one saw coming but everyone has to deal with.

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