ACA guidance, Items for calculating Premium Tax Credit

Revenue Procedure 2016-24 a ministerial item of guidance that provides indexing adjustments for certain provisions under sections 36B and 5000A of the Internal Revenue Code.  In particular, it updates the Applicable Percentage Table in § 36B(b)(3)(A)(i) to provide the Applicable Percentage Table for 2017 that is used to calculate an individual’s premium tax credit.  This revenue procedure also updates the required contribution percentage in § 36B(c)(2)(C)(i)(II) for plan years beginning after calendar year 2016.  The percentage is used to determine whether an individual is eligible for affordable employer-sponsored minimum essential coverage under § 36B.  Additionally, this revenue procedure cross-references the required contribution percentage under § 5000A(e)(1)(A) for plan years beginning after calendar year 2016, as determined under guidance issued by the Department of Health and Human Services.  The percentage is used to determine whether an individual is eligible for an exemption from the individual shared responsibility payment because of a lack of affordable minimum essential coverage.

Revenue Procedure 2016-24 will be in IRB 2016-16, dated April 18, 2016.