Quality Connection

News and Updates for Brokers

August 21, 2025

Past Issues | Forms | Secure eMail | My Account

Changes to Arkansas Mandate for Group Reporting

In April, the Arkansas legislature passed Act 651 (PDF) amending the state’s long-existing mandate for group reporting, which took effect August 3, 2025.

Group reporting will no longer be available for 25+ subscribers. Reporting will only be eligible at 51+ subscribers.
High-cost claimant reports will still be set at $10,000, but the reports will be required to list if the high claimant is active or terminated.
Reports will no longer be on an incurred basis for fully insured groups. The reports will run on paid months for medical and pharmacy.
A policyholder (group) may request reporting no more frequently than on a quarterly basis.

Please note that any quote requests for groups that do not qualify for reporting will have to include all dependent information as well as employee information so we can run the risk through Curv (formerly GRx).

If you have any questions, please reach out to your Sales Account Manager or Account Service Representative (PDF).

There’s Still Time to Give Us Your Feedback

In July, we sent out a Broker Quick Mail requesting your feedback. If you have already completed the survey, thank you for your feedback. If you haven’t already done so, please take a moment to go to the survey and complete it by answering one brief question. There is an option to provide any additional details you would like to share about what we are doing well or where we can improve. Your input is essential in helping us further our mission of providing the highest level of service to you, our valued brokers. We sincerely appreciate your business and continued support.

Begin Survey

2026 Affordability Threshold Increased

On July 18, 2025, the Internal Revenue Service (IRS) issued Revenue Procedure 2025–25 (PDF). For plan years beginning in 2026, the ACA affordability threshold will increase to 9.96% of an employee’s household income. This is a rise from the 9.02% that applied to 2025. This percentage is used to determine whether employer-sponsored health coverage is considered affordable, impacting eligibility for subsidized coverage through the ACA Marketplace and potential employer shared-responsibility penalties.

This increase gives Applicable Large Employers (ALEs) more flexibility in setting employee contributions while still meeting the ACA’s affordability requirements, potentially allowing for higher employee contributions in 2026 compared to 2025.

ACA Employer Mandate Penalties Updated for 2026

Along with the affordability percentage increase, the IRS also raised the penalties for failing to meet the ACA’s employer mandate requirements. For 2026, the Section 4980H(a) penalty (failure to offer minimum essential coverage) increases to $3,340 per full-time employee (excluding the first 30), up from $2,900 in 2025. The Section 4980H(b) penalty (coverage unaffordable, not offered, or lacking minimum value) increases to $5,010 per affected employee receiving a subsidy on the exchange, up from $4,350 in 2025.

Holiday Closure

Our offices will be closed on Monday, September 1, 2025, in observance of Labor Day.

Updated Forms

Make sure you are using current QualChoice forms, please download from the Broker Forms page at QualChoice.com each time you need to use one.

View Broker Forms.

News & Tips

Get Healthy Back-to-School Lunch Ideas on QualChoice.com. For more health tips and information, visit QualChoice.com/news.

QCA25-AR-H-255

Connect with us: