The “Family Glitch Fix” was passed in the Fall of 2022 to expand eligibility for health insurance premium tax credits for Affordable Care Act (ACA) marketplace plans.
It is estimated that approximately one million Americans will gain health insurance coverage or see their medical insurance become more affordable with this new ruling.
This new rule remedies the “family glitch” which refers to a prior ACA regulatory flaw that did not allow families to take advantage of subsidies to help lower their insurance premiums. If an employee received health insurance coverage through their workplace, dependents of the employee did not qualify for tax-credits since they had access to an employer health insurance plan.
The “Family Glitch Fix” means the dependents of an employee with access to employer-sponsored health insurance are now eligible for subsidies on ACA plans if the family premium with the employer coverage exceeds 9.5 % of the family’s income.