rp-24-14.pdf

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1

Part III

Administrative, Procedural, and Miscellaneous

26 CFR 601.601: Rules and Regulations.
(Also Part I, §§ 4980H; 54.4980H)

Rev. Proc. 2024-14

SECTION 1. PURPOSE
This revenue procedure provides indexing adjustments for the applicable dollar
amounts under § 4980H(c)(1) and (b)(1) of the Internal Revenue Code. These indexed
amounts are used to calculate the employer shared responsibility payments (ESRP)
under § 4980H(a) and (b)(1), respectively.
SECTION 2. ADJUSTED ITEMS
Under § 4980H(c)(5), in the case of any calendar year after 2014, the applicable
dollar amounts of $2,000 and $3,000 under § 4980H(c)(1) and (b)(1), respectively, are
increased by an amount equal to the product of such dollar amount and the premium
adjustment percentage (as defined in § 1302(c)(4) of the Patient Protection and
Affordable Care Act
1
) for the calendar year. If the amount of any increase is not a
multiple of $10, such increase is rounded to the next lowest multiple of $10.

1
Pub. L. 111–148, 124 Stat. 119 (2010).

2

The Department of Health and Human Services (HHS) published the premium
adjustment percentage for 2025 on November 15, 2023, using the most recent National
Health Expenditure Accounts (NHEA) income and premium data that was available at
the time of publication. For calculation of the 2025 benefit year payment parameters,
HHS used the NHEA Projections 2022-2031, the data source that reflected the most
recent projections available. Using the NHEA Projections 2022-2031, the premium
adjustment percentage for 2025 is the percentage (if any) by which the NHEA
Projections 2022-2031 value for per enrollee employer-sponsored insurance (ESI)
premiums for 2024 ($7,110) exceeds the NHEA Projections 2022-2031 value for per
enrollee ESI premiums for 2013 ($4,897) carried out to ten significant digits. Using this
formula, the applicable premium adjustment percentage is 1.4519093322.
2
For calendar
year 2025, the adjusted $2,000 amount under § 4980H(c)(1) is $2,900 ($2,000 x
1.4519093322 = $2,903.8186644 rounded down to $2,900), and the adjusted $3,000
amount under § 4980H(b)(1) is $4,350 ($3,000 x 1.4519093322 = $4,355.7279966
rounded down to $4,350).
SECTION 3. EFFECTIVE DATE
This revenue procedure is effective for taxable years and plan years beginning
after December 31, 2024.
SECTION 4. DRAFTING INFORMATION
The principal author of this revenue procedure is Jennifer Friedman of the Office
of Associate Chief Counsel (Employee Benefits, Exempt Organizations, and
Employment Taxes). For further information regarding this revenue procedure, contact

2
See https://www.cms.gov/files/document/2025-papi-parameters-guidance-2023-11-15.pdf.

3

the Health and Welfare Branch in the Office of Associate Chief Counsel (Employee
Benefits, Exempt Organizations, and Employment Taxes) at (202) 317-5500 (not a toll-
free call).