To be considered "affordable," what criteria must a health plan meet?

A health plan is considered "affordable" based on specific criteria set by the Affordable Care Act (ACA). For a plan to meet this affordability standard, the employee's contribution toward the premium cannot exceed a designated percentage of their household income. This percentage is established annually and is intended to ensure that individuals do not face an overwhelming financial burden when purchasing health coverage. The goal is to maintain health insurance as accessible to individuals, especially those with lower incomes.

The other options do not align with the criteria established for affordable health coverage. There isn't a universal cap of $100 per month for premiums, as premiums can vary widely based on the plan and the individual’s circumstances. Likewise, having no deductibles does not qualify a plan as affordable; cost-sharing aspects, while important, do not directly impact the premium affordability measurement itself. Lastly, affordability is not defined by having the lowest premium available in the market; rather, it is determined by whether the cost of the premium is manageable relative to an individual's income.