Breaking News | Biden-Harris Administration Updates on Final Rule to Fix Family Glitch
The final rule is expected to be filed in the Federal Register in the coming days and is expected to take effect in mid-December.
Published: 10.12.2022
Breaking News Update - 10.12.22The Executive Order previously issued in January 2021 by President Biden to protect and strengthen Medicaid and the Affordable Care Act resulted in the Treasury Department and the Internal Revenue Service (IRS) proposing regulatory changes related to the order.
The IRS finalized the rule change earlier this month and the rule cleared the Office of Management and Budget this past week. The final rule is expected to be filed in the Federal Register in the coming days and is expected to take effect in mid-December. The Biden Administration released a statement HERE addressing this action.
Savoy will provide more detailed information once the final rule and guidance is released.
Breaking News - 4.5.22
The Biden-Harris Administration announced that it would release a proposed rule to fix the family glitch. This proposed rule is a result of President Biden’s Executive Order from 2021 calling on the federal agencies to strengthen the Affordable Care Act. The Department of Treasury is using the proposed rule to revise the definition of "affordability" of employer-sponsored coverage as it applies specifically to family members of the employee.
Current regulations define employer-based health insurance as “affordable” if the coverage solely for the employee, not for family members, is affordable, making family members ineligible for a premium tax credit. The proposed changes would allow for the family members of workers who are offered affordable self-only coverage but unaffordable family coverage to qualify for premium tax credits in the exchange. The change, however, would not allow the employee to access a premium tax credit if the employee’s offer of coverage from the employer is deemed affordable under the current standards.
Stay tuned for a more in-depth review and visit the news section of our website for updates.
