General Info

Family Glitch

It is with *great* excitement that we share with you that the Treasury Department has issued their final regulation fixing the so-called family glitch.

Since marketplace enrollment began in 2013, affordability* of an offer of employer-based coverage has been determined based on the cost of employee-only coverage to the household. This has been true for both the employee as well as any family members who are offered coverage. If someone had an affordable offer of employer-based coverage, they, their spouse, and their dependents were not eligible for financial help—premium tax credits or cost-sharing reductions—for marketplace coverage. This has long been referred to as the family glitch.

The Treasury Department finalized a regulation that changes the affordability test for spouses and dependents of an employee. Beginning with determinations for financial help for the 2023 coverage year, affordability of an employer offer of family coverage will now be based on the cost of family coverage to the household. This will make coverage more affordable for a significant number of marketplace enrollees.

*The affordability threshold is updated every year. For 2023, an offer of employer-based coverage that costs more than 9.12% of household income is considered unaffordable.