The Kaiser Family Foundation estimates that 5.1 million people are affected by what’s called the “family glitch” in health insurance. Normally, employees whose work-based insurance is unaffordable (more than 9.5% of household income) can qualify for premium tax credits (PTCs). However, if the coverage is unaffordable only when the employee adds family members, the individual may not qualify for PTCs. Congressional Democrats, supported by some major medical associations, are trying to fix this glitch and have proposed new regulations that would clarify affordability and provide minimum value rules for family coverage. However, there isn’t bipartisan support for adding new regulations.
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