Yes, ICHRA can satisfy the corporate mandate for large employers (ALEs) if the offer is "affordable". ICHRA is deemed affordable if the amount an employee has to pay for self-only coverage (lowest cost silver plan on exchange) is less than 9.78% (rate for 2020) of employee's household income. For the year 2021 the affordability rate will increase to 9.83%.

See IRS Notice 2018-88 and IRS Notice rp-19-29), which provide safe harbors for calculating affordability which is required to meet the employer mandate.

Use our ICHRA affordability calculator to determine your rates!

For a more in-depth discussion regarding the corporate mandate, read our post titled, “Can ICHRA meet the employer mandate?”

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