Common Issues with Employer-Based Health Insurance for Families

Many employers allow family members to be added to their health insurance plans, but they often do not cover any portion of the premium for those dependents. This can be a significant financial burden for families, especially those with multiple children.

The “Family Glitch”

The “family glitch” is a provision in the Affordable Care Act (ACA) that can make it difficult for families to qualify for premium subsidies on the Health Insurance Marketplace. The glitch occurs when an employee has access to employer-sponsored health insurance that is considered “affordable” by the ACA, but the family’s portion of the premium is not affordable.

In such cases, the family is ineligible for premium subsidies on the Marketplace, even if their income would otherwise qualify them for financial assistance. This can result in families paying thousands of dollars more for health insurance than they would if they were able to enroll in subsidized Marketplace plans.

How Common is the Family Glitch?

The family glitch is a significant problem for families with employer-sponsored health insurance. A study by the Kaiser Family Foundation found that in 2022, an estimated 5.2 million people were uninsured due to the family glitch.

What Can You Do?

If you are a family facing the family glitch, there are a few things you can do:

Contact your employer’s HR department. Explain the situation to your HR department and see if there is any way to lower the cost of family coverage.
Explore your options on the Health Insurance Marketplace. Even if you are not eligible for premium subsidies, you may still be able to find a plan that is more affordable than your employer’s plan.
Consider self-employment. If you have the ability to work for yourself, you may be able to get health insurance through the Health Insurance Marketplace and qualify for premium subsidies.

Seek Professional Help

If you are struggling to afford health insurance for your family, it is important to seek professional help. A licensed agent can guide you through the process of finding affordable coverage that meets your needs.

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Disclaimer: This content is for educational purposes only and should not be construed as financial advice. Please consult with a licensed healthcare professional or agent before making any decisions regarding your health insurance.