Paper cutout of family The glitch affects about five million people and has made it impossible for many families to use the premium tax credit. (Photo: Shutterstock)

Federal agencies on Tuesday proposed a rule to fix the so-called “family glitch” that can make it expensive for dependents to obtain coverage under the Affordable Care Act.

Currently, people who do not have access to “affordable” health insurance through their jobs may qualify for a premium tax credit to purchase affordable, high-quality coverage on the ACA’s health insurance marketplaces. Current regulations consider employer-based health insurance affordable if the coverage solely for the employee, and not for family members, is affordable, making family members ineligible for a premium tax credit even though they need it to afford high-quality coverage through the marketplace.

 

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