New "family Glitch" Fix Improves Health Care Affordability, Accessibility for 40,000 Kansans

Press Release

Today, Representative Sharice Davids applauded the U.S. Department of the Treasury and Internal Revenue Service's action to fix the "family glitch," a loophole that previously stopped families with unaffordable employer-sponsored coverage from accessing lower premiums. It's estimated that 40,000 Kansans fell into the glitch and will now be able to access lower premiums through the Affordable Care Act (ACA), starting with the 2023 Open Enrollment Period in just a few weeks.

"Lowering costs for Kansas families continues to be one of my top priorities, and that certainly includes lowering health insurance costs for Kansans," said Davids. "I have pushed for a fix to the "family glitch' and am glad Kansans who fell into the glitch will finally get the support they deserve. I'll keep working to ensure our government systems work for folks in our community."

"I'm really excited to call our families back and tell them they can now save on coverage," said Molly Gotobed, Kansas Assistance Network Program Director. "This is going to save some families thousands of dollars!"

Under ACA's rules, an individual with employer-based insurance qualifies for tax breaks if their out-of-pocket costs exceed 9.6 percent of their income. But because that measure only includes the cost for the employee, not for their entire family, millions of Americans were locked out of more affordable coverage for their dependents.

With this fix, an estimated 5.1 million Americans will now have access to more affordable coverage options through the exchanges. Families switching from unaffordable employer-sponsored coverage could save on average $400 per person in premiums.

Davids previously released a report on the new health insurance savings Kansans can soon utilize thanks to recent federal actions, including the new health care law that passed in August. The law, known as the Inflation Reduction Act, will help families in the Kansas Third save an average of $980 a year if they buy their own insurance.

The "family glitch" fix, which will take effect in 2023, comes weeks before the start of the Open Enrollment Period. When families apply for 2023 coverage during the open enrollment period this fall, the new rules will be used to determine whether anyone in the household qualifies for a premium subsidy. Open Enrollment begins November 1st, and families can find more information at HealthCare.gov.

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