♦ In 2023, 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 9.12% of an employee's household income.
The law considers the cost for insurance that would cover the employee only — not the employee’s family.
Your spouse and children can purchase insurance thorough the Marketplace.
But because you have affordable insurance through your employer your spouse and children will not be able to receive a premium tax credit or other savings.
This oddity in the law has be dubbed the “family glitch.”
It is estimated that the "family glitch" affects 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.
The rule change must be open for public comment for 60 days. It is likely that it will be finalized after comments are reviewed.
HHS and the IRS say they are committed to ensuring the family glitch is fixed in time for the 2023 plan year.
• 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 ?