Families who get expensive health insurance through an employer could see a discount if they sign up for alternative coverage through the Affordable Care Act marketplace this fall.
The Treasury Department on Tuesday announced new rules that define tax breaks for some families when they purchase private health insurance plans through the Affordable Care Act.
New interpretation of Obama-era health law aims to fix “family glitch,” determining a family’s eligibility for ACA tax credits based on the cost of a health insurance plan benefits from an individual’s job rather than the cost of a family plan.
Since the law was enacted more than a decade ago, people who have access to health insurance plans through their employers must get discounts on the Price Care Act marketplace. affordable if they pay more than 9.5% of their income in monthly premiums.
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But for years, the Internal Revenue Service has based that calculation on the cost of a work-sponsored health plan for an individual, rather than a more expensive family plan. That means many families are not eligible for tax relief through the ACA, commonly known as “Obamacare.”
“Today’s action addresses a loophole in previous ACA regulations to provide more affordable coverage for approximately one million Americans,” Health and Human Services Secretary Xavier Becerra said in a statement. Father. “Our goal is simple: leave no one behind and give people the peace of mind when it comes to health insurance.”
The number of uninsured Americans has fallen to a historic low of 8% this year, with an estimated 26 million people in the US still uninsured.
Open enrollment for the Affordable Care Act marketplace begins November 1.
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