A Proposed Rule Issued to Fix ACA “Family Glitch”


On April 5, President Biden signed an Executive Order to strengthen the Affordable Care Act (ACA) by fixing the “Family Glitch” which made health coverage unaffordable for thousands of families. Under the current rules, employer-based coverage was seen as affordable if the coverage was for the employee only, and not for family members. If affordable for the employee, families were ineligible for tax credits even though they may need them to afford marketplace coverage. Coverage for family members of the employee was often very expensive and caused many to go without coverage. The “Family Glitch” affects more than 5 million people and has shut consumers out of affordable coverage and tax credits. This Executive Order proposes to eliminate the “Family Glitch” and will allow families to access tax credits on the marketplace. If made final, the rule would take effect in 2023.