Surviving the ACA “Family Glitch”: A Comprehensive Guide

Introduction

The Affordable Care Act (ACA) has provided millions of Americans with access to affordable health insurance. However, the law still has a few loopholes, one of which is the “family glitch.” This glitch can have a significant impact on families who have one spouse with employer-sponsored health insurance and the other spouse who is self-employed or works for a company that does not offer health insurance.

What is the Family Glitch?

The family glitch occurs when an employee-only health insurance plan is affordable for the employee, but the family plan is not. This means that the employee’s spouse and children are not eligible for subsidies to help pay for their health insurance.

For example, let’s say that an employee is offered a health insurance plan that costs $1,000 per month for employee-only coverage. The family plan costs $2,000 per month. If the employee’s income is below 138% of the federal poverty level, they would be eligible for a subsidy to help pay for the employee-only plan. However, because the family plan is not affordable, the employee’s spouse and children would not be eligible for subsidies.

How to Avoid the Family Glitch

There are two main ways to avoid the family glitch:

1. Find a job that offers affordable family coverage. This is the most straightforward way to avoid the glitch. However, it can be difficult to find an employer that offers affordable family coverage.
2. Get married or have a child. If you are not married, getting married will make you eligible for a subsidy to help pay for your spouse’s health insurance. If you are married, having a child will also make you eligible for a subsidy to help pay for your child’s health insurance.

What to Do if You Fall into the Family Glitch

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

1. Shop for health insurance on the Health Insurance Marketplace. You may be able to find a plan that is more affordable than the plan offered by your spouse’s employer.
2. Ask your employer if they offer any assistance with health insurance costs. Some employers offer subsidies to help employees pay for family coverage.
3. Consider getting a part-time job. If you are able to find a part-time job that offers health insurance, this could help you avoid the family glitch.

Conclusion

The family glitch is a problem that can have a significant impact on families. However, there are steps that you can take to avoid the glitch or mitigate its effects. If you fall into the family glitch, don’t be afraid to ask for help from a healthcare professional or insurance agent.