Reviewed by a licensed benefits professional. Last reviewed: October 14, 2026.
Employer health plan law changes for 2027 are mostly number changes, and they land on payroll, plan documents and employee notices all at once. Some numbers are final. One is still pending. Several notices are due before the new year starts.
This checklist separates what is final from what is not, then lists each task by date. For the full text of each rule, follow the linked guides.
What changed for employer health plans in 2027?
Four federal numbers changed for the 2027 plan year: the ACA affordability percentage, the employer mandate penalties, the HSA limits and the dependent care FSA limit, which stayed flat. The IRS has not yet released the 2027 health FSA limit.
Table: 2027 employer health plan numbers
| Item | 2026 | 2027 | Status | Source |
|---|---|---|---|---|
| ACA affordability percentage | 9.96% | 10.22% | Final | IRS Rev. Proc. 2026-26, 2026 |
| Employer mandate penalty, no coverage (4980H(a)) | Not compared here | $3,780 per full-time employee | Final | IRS Rev. Proc. 2026-22, 2026 |
| Employer mandate penalty, unaffordable coverage (4980H(b)) | Not compared here | $5,670 per affected employee | Final | IRS Rev. Proc. 2026-22, 2026 |
| HSA limit, self-only | $4,400 | $4,500 | Final | IRS Rev. Proc. 2026-24, 2026 |
| HSA limit, family | $8,750 | $9,000 | Final | IRS Rev. Proc. 2026-24, 2026 |
| HDHP minimum deductible | $1,700 self-only, $3,400 family | $1,750 self-only, $3,500 family | Final | IRS Rev. Proc. 2026-24, 2026 |
| HDHP out-of-pocket maximum | $8,500 self-only, $17,000 family | $8,700 self-only, $17,400 family | Final | IRS Rev. Proc. 2026-24, 2026 |
| Dependent care FSA | $7,500 | $7,500 | Set by statute | IRS Publication 15-B, 2026 |
| Health FSA | $3,400 | Not yet announced | Pending | IRS Publication 15-B, 2026 |
Our guides on the 2027 ACA affordability percentage and the 2027 HSA contribution limits explain the first and third rows in detail.
Is the 2027 health FSA limit final yet?
No. As of October 14, 2026, the IRS has not published the 2027 health FSA limit. Marsh projected $3,500 in June 2026 and called the figure unofficial, and it noted that the IRS usually announces official limits in October or November.
Do not print a 2027 health FSA number in open enrollment materials until the IRS confirms it. The 2026 limit is $3,400 (IRS Publication 15-B, 2026). If your plan document hard codes a dollar amount, change it to say the limit is the maximum the IRS allows for the year. Our health FSA contribution limit guide and cafeteria plan limits guide track the number once it is out.
Which of these changes could cost an employer money?
The ACA affordability percentage and the penalties matter most to applicable large employers, generally businesses with 50 or more full-time and full-time equivalent employees. A plan is affordable if the employee's cost for the lowest-cost self-only coverage stays at or below 10.22% of income under an IRS safe harbor for plan years starting after December 31, 2026 (IRS Rev. Proc. 2026-26, 2026).
The penalty rises to $3,780 per full-time employee if an employer offers no coverage, and to $5,670 per affected employee if the coverage is not affordable (IRS Rev. Proc. 2026-22, 2026). A higher percentage gives more room, but a contribution set at the edge of the 2026 limit should be rechecked. Our Letter 226-J guide shows what happens when the IRS finds a gap.
What are the 2027 employer health plan deadlines?
Employers face four dated tasks from now through March 2027: the Medicare Part D notice, open enrollment, the gag clause attestation and ACA reporting. Each date below comes from the cited source.
Table: Employer health plan deadlines, October 2026 to March 2027
| Date | Task | Who it affects | Source |
|---|---|---|---|
| October 15, 2026 | Give the annual Medicare Part D creditable coverage notice to Medicare-eligible plan members | Plans with drug coverage | Nelson Mullins compliance alert, 2020 |
| November 1, 2026 | Marketplace open enrollment begins for 2027 coverage | Employees who buy their own coverage | HealthCare.gov, 2026 |
| December 31, 2026 | File the gag clause prohibition compliance attestation | Group health plan sponsors | Haynes Boone, 2025 |
| Within 60 days after the plan year starts | Report creditable coverage status to CMS online | Plans with drug coverage | Nelson Mullins compliance alert, 2020 |
| March 2, 2027 | Furnish Form 1095-C to employees (30 days after January 31) | Applicable large employers | 87 Fed. Reg. 76569, as summarized by LCW, 2022 |
| February 28 (paper) or March 31 (electronic), 2027 | File Forms 1094-C and 1095-C with the IRS | Applicable large employers | LCW, 2022 |
Two of these deadlines are easy to miss. The Medicare Part D notice guide and the gag clause attestation guide cover who must file. Our Form 1095-C guide covers the reporting forms. If a filing date falls on a weekend or holiday, confirm the shifted date with the IRS instructions for the year.
What should payroll update before January 1?
Payroll should update three items before the 2027 plan year starts: HSA payroll caps, employee contribution amounts for affordability, and election forms that show plan limits. Each one takes minutes when done early and hours when done after a pay run.
- Raise the HSA payroll cap to $4,500 for self-only and $9,000 for family coverage.
- Test the lowest-cost self-only contribution against the 10.22% safe harbor if you are an applicable large employer.
- Remove any printed 2027 health FSA dollar amount until the IRS confirms it.
- Check that the plan document names the plan year and the election rules. Our plan year guide explains how to set it.
- Send your open enrollment packet with the notice dates in place. The employer open enrollment guide has a full timeline.
Pre-tax HSA payroll contributions also cut payroll tax when they run through a Section 125 plan. The IRS rate is 7.65% for the employer share of FICA, which is Social Security and Medicare tax (IRS Tax Topic 751, 2026). Our FICA tax savings guide shows the math.
Who handles this work for a small employer?
Small employers usually split this work between a payroll provider, a broker and an internal HR owner, and gaps open in the handoffs. Summit Health Benefits designs and administers Section 125 cafeteria plans, including the written plan document and summary plan description, nondiscrimination testing support, and review by ERISA attorneys.
Summit charges $35 per enrolled employee per month. That fee is paid from the FICA savings the plan creates, so an employer still nets about $56 to $101 per enrolled employee per month. Use the savings calculator for your own headcount.
Schedule a 2027 Plan Year Review With Our Benefits Experts
A Summit Health Benefits advisor walks through your 2027 limits, notices and payroll setup, then estimates what a Section 125 plan saves your payroll after the $35 per enrolled employee monthly fee, which those savings cover.
Frequently Asked Questions
What employer health plan law changes take effect in 2027?
What is the 2027 ACA affordability percentage?
What is the 2027 HSA contribution limit?
What is the 2027 health FSA limit?
When is the Medicare Part D notice due?
When is the gag clause attestation due?
Does a small employer need to follow the ACA employer mandate?
Sources: IRS Revenue Procedure 2026-26 (2027 affordability percentage), as summarized by EY Tax News, July 23, 2026. IRS Revenue Procedure 2026-22 (2027 employer shared responsibility amounts), 2026. IRS Revenue Procedure 2026-24 (2027 HSA and HDHP limits), released May 29, 2026, as summarized by KPMG. IRS Publication 15-B, 2026. IRS Tax Topic 751, 2026. Marsh, 2027 transportation and health FSA limit projections, June 11, 2026. Nelson Mullins, Medicare Part D notice alert, 2020. Haynes Boone, gag clause attestation reminder, December 2025. Federal Register 87 FR 76569 (Form 1095-C furnishing deadline), as summarized by LCW, 2022. HealthCare.gov open enrollment dates, 2026.