We were reminded by our friends at Sesco Management that the definition of affordable health care plans under the Affordable Care Act is inflation-adjusted and we’re thankful for the heads-up. Under Obamacare, employer-sponsored coverage for plan years beginning in 2018 is considered affordable if an employee’s required contribution for self-only coverage does not exceed 9.56% of the employee’s household income for the year. This percent is down from the 9.69 that was operable in 2017. To avail yourself of the ACA safe-harbor, one of the following should be used in lieu of household income (since the employer doesn’t know this number): employee’s W-2 wages (Box 1); employee’s rate of pay (hourly wage x 130 hours) as of 1st day of plan; or individual Federal Poverty Level (FPL).