The Glitch refers to federal rules that make it hard for relatives of those on Employer Insurance to qualify for financial help. With Group Insurance, if the Employees insurance is affordable (Business contributes at least 50%) then the entire family is considered to have affordable insurance. This is often not the case, the cost for the remaining dependents may exceed 20% of the families household income. Affordable healthcare is defined as less than 10% of total household income for monthly healthcare premiums.
Question - How would the new proposal fix the Family Glitch?
- The IRS and Treasury Department (who administers the Premium Tax Credits) are proposing a revised interpretation of the affordability rule in the Affordable Care Act (Obamacare).
- Premium Tax Credits are send to Carriers on behalf of insured to lower the monthly premium costs
- The IRS has stated that the intention of the Affordable Care Act (ACA) is to ensure the ENTIRE family's health insurance is affordable
Question - What happens next?
- We are currently in a public comment period until 6/6/2022. A public hearing will be held on 6/27/2022, and if there is enough interest, it will establish an effective date for the when it will publish the final rule.
Question - Will the fix be in for Open Enrollment for 1/1/2023 Coverage?
- Healthcare.Gov has announced Open Enrollment will begin 11/1/2022.
- The IRS and Treasury Department are "working closely" with Health and Human Services Department to ensure Healthcare.Gov can put the change in prior to Open Enrollment on 11/1/2022.
Question - Will the be opposition to fixing the Family Glitch?
- Health Insurance Carriers and Hospital Groups have voiced support for fixing the Family Glitch.
- Most carriers are most likely factoring in the changes for their 2023 rates.
- Many Republications have opposed Obamacare since its inception.
- Most legal experts argue this is an "administrative fix" rather that new legislation.
Real Example of one of my clients:
- He was recently downsized from his company - He is married with 2 children
- His company offered Health Insurance so we is not eligible for Premium Tax Credits on the ACA.
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He was paying $1,000 for his 50% and his dependents. On Group Insurance, employee + Family is a fixed rate regardless of household size OR income.
- We moved him and his family to the ACA - He was eligible for $1,200 in Premium Tax Credits AND we found a Carrier with better coverage options. His new monthly premium for Him AND his Family is $1.26 for the SAME Coverage. This is THE FAMILY Glitch
Know someone who has Employer Insurance BUT can not afford to cover their family? Have them call me to see how much money they can save in 2023 IF the Family Glitch is Fixed.
- 210 848 9304
