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For the 2026 plan year, a health insurance plan is deemed affordable for individuals with employer-sponsored coverage if the employee's premium costs do not exceed 9.96% of their household income. This percentage is determined by federal guidelines that define affordability in the context of health insurance.

To elaborate, the calculation considers the employee's contribution to the health plan's premium, ensuring it is a reasonable part of their overall financial burden. If the premium costs exceed this threshold, the coverage would not be classified as affordable, which could have implications for eligibility for premium tax credits or other assistance for marketplace coverage. This standard of 9.96% aligns with regulations aiming to ensure access to affordable healthcare and is updated periodically based on economic conditions.

The other percentages listed do not align with the criteria set for the 2026 plan year, making 9.96% the accurate figure representing affordability for employer-sponsored health plans in this context.