12/11/2024
GROUP / EMPLOYER SPONSORED COVERAGE:🚨 are you overpaying?
The Family Glitch Fix: What You Need to Know
The "family glitch" used to prevent many families from getting affordable health insurance coverage through the marketplace, even if they couldn’t afford the employer-sponsored plan for their dependents. But recent changes have fixed this issue!
Now, if an employee’s individual health insurance plan is “affordable” but the cost to cover their family is too high, their family members may be eligible for subsidies on the Health Insurance Marketplace. This means more affordable options for families who were previously stuck with high premiums.
✨ How to calculate if your coverage is considered “affordable”✨
Employee’s Coverage: The calculator first looks at the cost of health insurance for just the employee. Under the ACA, if the employee's individual plan is considered "affordable" (meaning the cost of the premium is 9.12% or less of their household income in 2024), the family would typically not qualify for marketplace subsidies.
Family Coverage Costs: The calculator then compares the cost of the family plan through the employer. If the cost to cover the employee’s spouse and/or children is too high (i.e., more than 9.12% of household income for 2024), the family is eligible to apply for subsidies on the marketplace.
Subsidy Eligibility: If your employer’s family coverage is unaffordable, you can explore the marketplace for more affordable options, with the help of subsidies based on your household income.
