Family Glitch fixed: Affordability of employer sponsored insurance (ESI) considers the cost for the entire family due to a new IRS rule.
Previously the affordability of an employer sponsored health plan was based solely on the cost of the plan for the employee and not the whole family. This left many dependents without affordable employer sponsored coverage and unable to access tax credits, or subsidies, through the Health Connector. This issue was often referred to as the “family glitch.” The new rule eliminates the family glitch by considering the cost of a family plan when determining whether an employee’s family has access to affordable coverage. The new IRS rule takes effect for plan year 2023.
For more information or to see if your family members may benefit from this new rule, call us at Ecu-Health Care 413-664-5418