Family Glitch
♦ In 2024, insurance from your employer is considered affordable if the employee’s share of the premium for the lowest priced self-only plan available does not exceed 8.39% of an employee's household income.
The law initially considered the cost for insurance that would cover the employee only — not the employee’s family.
Your spouse and children could purchase insurance thorough the Marketplace.
But because you had affordable insurance through your employer your spouse and children would not be able to receive a premium tax credit or other savings.
This oddity in the law was called the “family glitch.”
It is estimated that the "family glitch" affected about 5 million Americans.
♦ In April 2022, the Biden administration proposed a rule change so that the cost of insurance would take into consideration the cost of covering the employee and their family members.
♦ In October 2022, the IRS issued a final rule change to "fix" the family glitch.
The rule change took place in time for plan year 2023 enrollment.
Related content
• What is affordable coverage ?
• I believe my employer's plan is not affordable. What do I do ?
• Can my family buy a plan from the Marketplace if I have insurance through my company ?
