Biden announces final rule to fix Affordable Care Act’s ‘family glitch’
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President Joe Biden announced that the Treasury Department is finalizing a fix for the “family glitch” in the Affordable Care Act, which will allow more than 1 million Americans to gain or have more affordable insurance starting Nov. 1.
The Biden administration previously proposed the fix this past April, noting that the glitch impacts around 5 million Americans due to regulations that make quality health insurance plans unachievable.
“Because of this glitch, employer-based health insurance has been considered ‘affordable’ if the coverage is affordable for the employee even if it is not for their family members — making those family members ineligible for Affordable Care Act (ACA) subsidies even though they need them to afford quality coverage,” Biden said.
According to the Kaiser Family Foundation, 2019 Current Population Survey data showed that more than half of the 5 million people affected by the glitch are aged 0 to 18 years (54%), while 9% (n = 451,000) are uninsured. The vast majority (85%) are enrolled in employer-sponsored health insurance.
The final rule will allow family members of workers who are offered affordable self-coverage — but unaffordable family coverage — to qualify for premium tax credits to purchase ACA plans. Prior estimates from the Biden administration projected that about 200,000 uninsured Americans would gain coverage following the fix.
In a corresponding statement, HSS Secretary Xavier Becerra wrote that strengthening ACA implementations “is key to increasing access to quality, affordable health care.”
“We are meeting people where they are to tell them about their health care options through unprecedented outreach efforts. And through landmark legislation like the American Rescue Plan and the Inflation Reduction Act, we have offered the lowest ACA premiums rates in history,” Becerra said. “Our work to expand coverage and lower health care costs for American families never stops.”
References:
- Fact sheet: Biden Harris administration proposes rule to fix “family glitch” and lower health care costs. https://www.whitehouse.gov/briefing-room/statements-releases/2022/04/05/fact-sheet-biden-harris-administration-proposes-rule-to-fix-family-glitch-and-lower-health-care-costs/. Published April 5, 2022. Accessed Oct. 11, 2022.
- Statement by HHS Secretary Xavier Becerra on administration action to resolve “family glitch” and lower health care costs. https://www.hhs.gov/about/news/2022/10/11/statement-hhs-secretary-xavier-becerra-administration-action-resolve-family-glitch-lower-health-care-costs.html. Published Oct. 11, 2022. Accessed Oct. 11, 2022.
- Statement by President Joe Biden on “family glitch” final rule. https://www.whitehouse.gov/briefing-room/statements-releases/2022/10/11/statement-by-president-joe-biden-on-family-glitch-final-rule/. Published Oct. 11, 2022. Accessed Oct. 11, 2022.
- The ACA family glitch and affordability of employer coverage. https://www.kff.org/report-section/the-aca-family-glitch-and-affordability-of-employer-coverage-issue-brief/. Published April 7, 2021. Accessed Oct. 11, 2022.
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