Biden To Propose Change To Obamacare To Extend Subsidies For Families: WSJ

  • The Biden administration is expected to propose a change in Affordable Care Act (ACA) subsidies to allow some people to afford health insurance for their families, writes Wall Street Journal.
  • The proposed change, expected to be announced Tuesday, would recalculate what is considered affordable for a family with employer-based health insurance.
  • Currently, workers can’t get ACA subsidies to lower their premiums if they get affordable health insurance coverage from an employer. 
  • But the definition of affordable is determined by the cost of the coverage for the employee and not for the employee’s spouse or children.
  • According to the Kaiser Family Foundation, about five million people are affected by the so-called family glitch. Under the proposed change, they will have more options for insurance coverage. 
  • Additionally, an estimated 200,000 uninsured people are expected to gain coverage under the proposed change by the Treasury Department, federal officials said. 
  • The proposed rule would go into effect on January 1, 2023, and would change the calculation. Suppose coverage for the family costs more than about 10% of household income. In that case, federal officials said that the nonemployee family members would be eligible for financial assistance in the marketplace.
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