- The Biden administration is expected to propose a change in Affordable Care Act (ACA) subsidies to allow some people to afford health insurance for their families, writes Wall Street Journal.
- The proposed change, expected to be announced Tuesday, would recalculate what is considered affordable for a family with employer-based health insurance.
- Currently, workers can’t get ACA subsidies to lower their premiums if they get affordable health insurance coverage from an employer.
- But the definition of affordable is determined by the cost of the coverage for the employee and not for the employee’s spouse or children.
- According to the Kaiser Family Foundation, about five million people are affected by the so-called family glitch. Under the proposed change, they will have more options for insurance coverage.
- Additionally, an estimated 200,000 uninsured people are expected to gain coverage under the proposed change by the Treasury Department, federal officials said.
- The proposed rule would go into effect on January 1, 2023, and would change the calculation. Suppose coverage for the family costs more than about 10% of household income. In that case, federal officials said that the nonemployee family members would be eligible for financial assistance in the marketplace.
