In 2024, a job-based health plan is considered "affordable" if your share of the monthly premium in the lowest-cost plan offered by the employer is less than 8.39% of your household income.The lowest-cost plan must also meet the minimum value standard.If you’re the employee, affordability is based on only the premium you’d pay for self-only (individual) coverage.For coverage starting January 1, if you’re offered job-based coverage through a household member’s job, affordability is based on the premium amount to cover everyone in the household.Total household income includes incomes from everybody in the household who’s required to file a tax return.If the premiums aren’t considered affordable for the employee and the household, they may qualify for savings in a Marketplace plan. But, if the premium is considered affordable for the employee, but not for other members of the household, then only the other household members may qualify for savings.Example:Household’s monthly income = $4,083 (about $49,000 per year).8.39% of the household’s monthly household income = $343For the employee:Monthly premium the employee would have to pay for the lowest-priced plan that covers just the employee = $300Is the plan affordable for the employee? YES. The premium the employee would have to pay to cover just themselves ($300) is less than 8.39% of the household’s income ($343). Because the job-based coverage is affordable for the employee, the employee won’t qualify for savings in the Marketplace.For other household members:Monthly premium the employee would have to pay for the lowest-priced plan that covers other members of their household = $450Is the plan affordable for other household members? NO. The premium the employee would have to pay to cover others in the household ($450) is more than 8.39% of the household’s income ($343). Because the job-based coverage isn't affordable for the employee’s household members, the employee’s household members may qualify for savings in the Marketplace.Related contentGet tips before accepting job-based coverageHow to estimate your household incomeHow to know if a plan meets the "minimum value" standardA standard of minimum coverage that applies to job-based health plans. If your employer’s plan meets this standard and is considered “affordable,” you won’t qualify for a premium tax credit if you buy a Marketplace insurance plan instead.Refer to glossary for more details.