Updated 10/27/2023 with 2024 threshold information
The IRS fixed the “family glitch,” meaning more families qualify for subsidized Affordable Care Act (ACA) health plans. Your family may be eligible for low-cost insurance through the ACA marketplace, even if you have job-based coverage.
What is the family glitch?
Workers were not eligible for marketplace premium subsidies if the health insurance offered through their employers provided minimum value and was considered affordable based on the cost of individual coverage. It did not take into account the cost to add your spouse and children.
What Changed?
The IRS changed the rule to address the cost of having family members on your plan. If your employer’s insurance is considered affordable for you ̶̶ it doesn’t cost more than 8.39% of your income ̶̶ you are still not eligible to enroll in an ACA plan. But if the health plan is not affordable when you add your spouse and children, they may qualify for tax credits through the ACA marketplace.
In short, you would keep your affordable employer coverage, but could enroll your family in an ACA health plan. The subsidies they would get would be based on your total household income.
How Do I Find Out if My Employer’s Plan is Affordable?
The easiest way is to ask your employer. For the 2024 plan year, your coverage is considered affordable if it costs you 8.39% or less of your income. This is called the affordability threshold. If it is more than 8.39% of your income, you qualify for an ACA plan for yourself and family.
⊕ Download our flyer, Family Glitch Explained, to see if you qualify.
What Tax Credits is My Family Eligible for?
Tax credits are based on the total number of people in your household and your household income. Your household income must be at least 100% of the federal poverty level. In 2024:
- An individual must earn at least $15,580
- A family of 4 must earn at least $30,000
Don’t Delay, Act Today
You won’t be able to enroll your family in your employer’s plan after your company’s open enrollment period ends. So now is the time to find out if they are eligible for subsidies through an ACA health plan.
Can I Get Help to Enroll in an ACA Health Plan?
Yes, there are free resources to answer questions and help your family enroll. You could call the Federal Marketplace or a health navigator. You can also call an experienced agent. But not all agents are the same.
Captive agents work for one insurance company, so they only sell plans from that insurer. Independent agents work with several insurers, so they can compare many plans from different companies. Independent agents will also be available to answer your insurance-related questions all year long.
American Exchange Can Help You Enroll in an ACA Plan
American Exchange has licensed, independent agents who will listen to your healthcare and lifestyle needs to help you find the best plan and ensure your family gets all available tax credits. Call 1.888.995.1674 or visit americanexchange.com.
1.888.995.1674 americanexchange.com
During the ACA Open Enrollment period (November 1 – December 15), our agents are available to speak with you:
Monday through Friday from 8:00 a.m. to 8:00 p.m. Eastern Time
Saturday 8:00 a.m.to 5:00 p.m. Eastern Time
