HHS Finalizes Rule That Aims to Fix the Affordable Care Act Family Glitch

The US Department of Health and Human Services (HHS) announced that the Treasury Department has finalized a rule from the Biden administration that would seek to address the Affordable Care Act family glitch.

“Protecting and strengthening implementation of the Affordable Care Act is key to increasing access to quality, affordable health care,” HHS Secretary Xavier Becerra said.

“Today’s action resolves a flaw in prior ACA regulations to bring more affordable coverage to about one million Americans. Our goal is simple: leave no one behind and give everyone the peace of mind that comes with health insurance.”

Secretary Becerra pointed out how the Biden administration has bolstered the Affordable Care Act marketplace. The Secretary pointed to historic Affordable Care Act enrollment levels and low uninsurance levels to underscore the importance of fixing the family glitch.

Additionally, Secretary Becerra credited the Biden administration’s efforts to promote outreach efforts. The administration boosted Navigator program funding by nearly $100 million in late August 2022.

He also pointed to the role that separate legislation such as the American Rescue Plan Act and the Inflation Reduction Act have played in reinforcing the Affordable Care Act marketplace and lowering premiums.

“Whether you’re part of a family previously affected by this glitch, or an individual buying insurance on the marketplace, the Biden-Harris Administration is committed to ensuring you have the access to health care you deserve,” Secretary Becerra explained in the press release.

The Biden administration released a statement calling the fix the “most significant administrative action” bolstering the Affordable Care Act since the Act went into effect.

“Starting next month, Americans can sign up to take advantage of this change,” President Joe Biden said in his statement. “I urge everyone to take advantage by visiting HealthCare.gov starting November 1st and signing up for a plan that works best for them.”

The legislation was introduced in April 2022. It would allow families that do not have access to affordable employer-based coverage for the whole family to use premium tax credits to purchase coverage through the Affordable Care Act health insurance marketplace.

The Treasury Department and Internal Revenue Service estimated that the rule would cover 200,000 Americans who were otherwise uninsured and would extend more affordable coverage to nearly 1 million Americans.

Prior to this legislation, individuals were eligible for premium tax credits if their employer-based health insurance options were unaffordable for the employee alone, not including family members.

“For family members of an employee offered health coverage through an employer, the cost of that family coverage can sometimes be very expensive and make health insurance out of reach,” the White House briefing on the new law explained.

Experts have predicted that fixing the family glitch could help improve the risk pool in the individual health insurance marketplace. Others have anticipated that rectifying the family glitch could drive down ACA premiums.