SECTION 1. PURPOSE

This revenue procedure provides indexing adjustments for certain provisions under section 36B of the Internal Revenue

Code. In particular, it updates the Applicable Percentage Table in § 36B(b)(3) (A)(i) to provide the Applicable Percentage Table for 2019. This table is used to calculate an individual’s premium tax credit. This revenue procedure also updates the required contribution percentage in § 36B(c) (2)(C)(i)(II) for plan years beginning after calendar year 2018. The percentage is used to determine whether an individual is eligible for affordable employer-sponsored minimum essential coverage under § 36B. This revenue procedure uses the methodology described in Section 4 of Rev. Proc. 2014– 37, 2014–2 C.B. 363, to index the Applicable Percentage Table and the § 36B required contribution percentage.

In addition to the adjustments described in Rev. Proc. 2014–37, § 36B(b) (3)(A)(ii)(II) provides that, except as provided in § 36B(b)(3)(A)(ii)(III), an additional adjustment must be made for years after 2018 to reflect the rates of premium growth relative to the growth in the consumer price index. The IRS and the Treasury Department have determined that the failsafe exception described in § 36B(b) (3)(A)(ii)(III) applies for 2019 and no additional adjustment under § 36B(b)(3) (A)(ii)(II) is required for 2019.