Is Your Employer Health Insurance Unaffordable?

What is the Family Glitch? Understanding the IRS Regulations Fix for ACA’s Family Glitch

The Affordable Care Act (ACA) has been a cornerstone in providing health coverage to millions of Americans. However, there was a significant issue known as the “Family Glitch” that left many families without affordable health insurance options. Fortunately, recent IRS regulations have addressed this problem as of 2023. At Revive Insurance, we’re here to help you understand what the Family Glitch is and how the new regulations can benefit your family.

What is the Family Glitch?

The Family Glitch refers to a loophole in the ACA that affected families’ access to affordable health insurance. Under the original rules, if an employer offered affordable health insurance to an individual employee, that employee’s entire family was considered to have access to affordable coverage—even if the actual cost of insuring the entire family was prohibitively expensive. As a result, many households found themselves ineligible for premium tax credits or other subsidies, leaving them to pay extremely high out-of-pocket costs for family health plans.

The Fix: IRS Regulations as of 2023

In 2023, the IRS implemented new regulations to fix the Family Glitch. Here’s what the changes entail:

1. Affordability Determination
   The affordability of employer-sponsored health insurance is now determined based on the cost of covering the entire family, not just the individual employee. This means that if the cost of family coverage (for the lowest offered plan) exceeds 9.12% of your household income in 2023, the family is considered to have unaffordable coverage. This updated rule allows families to seek alternative, more affordable options through the health insurance marketplace.

2. Eligibility for Subsidies
   Families who find employer-sponsored coverage unaffordable under these new rules may now qualify for subsidies via the ACA marketplace. Such subsidies can significantly reduce monthly premiums, making health coverage more budget-friendly for families who previously fell through the cracks. Depending on your household income, you could also qualify for cost-sharing reductions that lower deductibles and out-of-pocket expenses.

How This Impacts You

If you previously faced high premiums for employer-sponsored family coverage, you may now be eligible for more affordable health insurance plans through the ACA marketplace. This change ensures that more families can access the healthcare they need without incurring financial strain. It also broadens your coverage options by allowing you to compare different plan tiers—like HMOs, PPOs, and EPOs—and choose the one that best aligns with your family’s medical needs and budget.

Steps to Take

1. Review Your Current Coverage
   Assess the cost (for the lowest offered plan) of your employer-sponsored health insurance. Calculate whether the total premium to cover your entire family exceeds the 9.12% threshold of your household income. If it does, you might be able to find a better deal elsewhere.

2. Explore ACA Marketplace Options
   Visit the ACA marketplace (Healthcare.gov or your state’s exchange) to explore various health insurance plans. You can compare premiums, out-of-pocket costs, and provider networks. This is especially useful during the open enrollment period, when you can switch or enroll in new coverage without penalties. If you have certain life events—like a marriage, a new baby, or job loss—you may also qualify for a special enrollment period.

3. Use the Family Glitch Calculator
   To determine if you qualify for subsidies under the new rules, you can use an online Family Glitch Calculator. Simply enter your household size, income, and the costs of your employer’s family plan to see if you meet the criteria for subsidized coverage.

4. Consult with Revive Insurance
   Navigating these changes can be complex, especially if you’re unsure whether your family’s employer-sponsored plan is truly affordable. Revive Insurance’s knowledgeable agents can guide you through the process, help you understand your options, and determine your eligibility for subsidies.

Why Choose Revive Insurance?

1. Expert Guidance
   Our team is well-versed in the latest ACA regulations, including the specifics of the 2023 Family Glitch fix. We can provide personalized advice tailored to your household’s situation.

2. No Cost to You
   Our services are offered at no additional charge. We help you compare plans and subsidies so you don’t have to pay more for the guidance you need.

3. Comprehensive Support
   From reviewing your current employer coverage to exploring marketplace plans, we’re here at every stage. We’ll simplify the enrollment process, ensuring that you select a plan offering the optimal balance of coverage and cost.

Contact Revive Insurance Today!

Ensure your family has the health coverage they deserve. Contact Revive Insurance today to learn more about how the IRS regulations fixing the ACA’s Family Glitch can benefit you. Let us help you find the best and most affordable health insurance options available.Click here to get started or call us at (801) 901-8448We’re committed to helping you secure peace of mind—and healthier futures—for everyone in your household.