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Does ICHRA satisfy the Corporate Mandate for large employers ALEs?
Does ICHRA satisfy the Corporate Mandate for large employers ALEs?

Does ICHRA meet the employer mandate?

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Written by Support
Updated over 9 months ago

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 8.39% (rate for 2024) of employee's household income. Here is a more in depth look into 2024's affordability!

See IRS Notice 2023-29 that provides the applicable percentage table.

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

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