Qualifying Offer Method vs 98% Method

A "Qualifying Offer" is an offer that satisfies all of the following criteria:

  • It is an offer of coverage that provides minimum value;

  • The employee cost for employee-only coverage for each month does not exceed 9.5% (as adjusted) of the mainland single federal poverty line divided by 12; and

  • The offer of coverage is also made to the employee's spouse and dependents (if any).

An ALE Member may qualify for the 98% Offer Method of reporting if it:

  • Offered affordable coverage providing minimum value to at least 98% of its employees for whom it is filing a Form 1095-C (taking into account all months during which the individuals were employees and were not in a Limited Non-Assessment Period (see the Instructions for Forms 1094-C and 1095-C for the definition of this term)), and offered coverage to those employees' dependents, and

  • Certifies to the IRS that it did so.