Employers Face Higher ACA Penalties in 2027
Employers that fall short on Affordable Care Act (ACA) coverage will pay more in 2027.
The IRS released the indexed employer shared responsibility penalty amounts, effective for plan years beginning after Dec. 31, 2026.
IRS Announces ACA Penalties for Next Year
The 2027 ACA penalties will be:
- $3,780 under section 4980H(a), the penalty for not offering coverage to enough full-time employees (up from $3,340), and
- $5,670 under section 4980H(b), the penalty tied to coverage that is unaffordable or lacks minimum value (up from $5,010).
These are annual, per-employee figures assessed monthly. Applicable large employers should factor in the higher exposure when making 2027 coverage offers and affordability decisions.
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