HHS Releases 2024 Federal Poverty Guidelines

On January 17, 2024, HHS released its Annual Update of the HHS Poverty Guidelines for 2024. The notice provides an annual update on poverty guidelines based on the prior calendar year’s increase in prices as measured by the Consumer Price Index. These guidelines are used, in part, to help determine eligibility for federal programs such as Medicaid and to determine eligibility for subsidies in the individual marketplace. Further, these guidelines impact employers who use the Federal Poverty Line (FPL) safe harbor to determine affordability under the ACA’s employer mandate.

The FPL safe harbor uses the federal poverty line for a one-person household (for its respective geographic location) multiplied by the affordability threshold for the respective year; that total is then divided by 12 to derive the maximum self-only cost-share per month. For plan years beginning between January and June of a calendar year, plan sponsors can rely on the prior calendar year’s federal poverty line for the FPL safe harbor calculation since the annual update generally occurs after the plan year has already begun.

The 2024 federal poverty line for a one-person household in the 48 contiguous states and the District of Columbia is $15,060; the poverty guideline increases by $5,380 for each additional household member. In Alaska, the poverty guideline is $18,810 for a one-person household and increases by $6,730 for each additional household member. In Hawaii, the poverty guideline is $17,310 for a one-person household and increases by $6,190 for each additional household member.

For example, using the federal poverty line for the 48 contiguous states, the maximum self-only monthly cost-share should not exceed $105.29 for employers using the FPL safe harbor.

Employers who use the FPL safe harbor should be mindful of the 2024 update, although they can continue to rely on 2023 guidelines through June 2024 if desired.

Annual Update of the HHS Poverty Guidelines »