rp-25-26.pdf

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Part III

Administrative, Procedural, and Miscellaneous

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

Rev. Proc. 2025-26

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).

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The Department of Health and Human Services (HHS) published the premium
adjustment percentage for 2026 on June 25, 2025, 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 2026 benefit year payment parameters,
HHS used the NHEA Projections 2023-2032, the data source that reflected the most
recent projections available. Using the NHEA Projections 2023-2032, the premium
adjustment percentage for 2026 is the percentage (if any) by which the most recent
NHEA projection of per enrollee premiums for private health insurance (excluding
Medigap and property and casualty insurance) for 2025 ($7,885) exceeds the most
recent NHEA estimate of per enrollee premiums for private health insurance (excluding
Medigap and property and casualty insurance) for 2013 ($4,714) carried out to ten
significant digits. Using this formula, the applicable premium adjustment percentage is
1.6726771319.
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For calendar year 2026, the adjusted $2,000 amount under
§ 4980H(c)(1) is $3,340 ($2,000 x 1.6726771319 = $3,345.3542638 rounded down to
$3,340), and the adjusted $3,000 amount under § 4980H(b)(1) is $5,010 ($3,000 x
1.6726771319 = $5,018.0313957 rounded down to $5,010).
SECTION 3. EFFECTIVE DATE
This revenue procedure is effective for taxable years and plan years beginning
after December 31, 2025.
SECTION 4. DRAFTING INFORMATION
The principal author of this revenue procedure is the Office of Associate Chief
Counsel (Employee Benefits, Exempt Organizations, and Employment Taxes). For

2
See 90 FR 27074, 27170 and 27173 (June 25, 2025).

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further information regarding this revenue procedure, contact the Office of Associate
Chief Counsel (Employee Benefits, Exempt Organizations, and Employment Taxes) at
(202) 317-5500 (not a toll-free call).