The Biden administration has proposed fixing a problem with a regulation that revises an interpretation of the rules for tax credits under the Affordable Care Act, nicknamed Obamacare. If the change is finalized, hundreds of thousands of people – mostly children of lower-income families and women – could become eligible for more affordable coverage.
Affected families would save an average of $ 400 per person a year on health insurance premiums once the problem is fixed, and low-income families would save even more, the Urban Institute estimates.
Currently, if a family member can get affordable individual health coverage through a job – even if the cost of covering the worker’s dependents is too steep – the rest of the family generally can not qualify for tax credits to help buy lower-cost insurance on the federal website HealthCare.gov or the state insurance marketplaces.
A workplace plan is considered “affordable” if the premium for covering just the employee – not a spouse or children – is less than about 10 percent of the family’s income. Family premiums, however, are typically higher and may exceed that threshold, Ann Carrns reports for The New York Times.
That families end up paying higher and less affordable premiums for the job-based health insurance – or skipping coverage altogether.