Biden to Propose Change to ACA to Extend Subsidies

Some people who cannot afford health insurance for their families can receive a subsidy for the reform of the medical insurance system under the proposal of the Biden administration aimed at strengthening the Obama-era law. The proposed change would recalculate what is considered affordable for a family with employer-based health insurance.

Currently, workers are not eligible for ACA subsidies to reduce their premiums if they receive affordable health insurance from their employer. However, the definition of affordability is determined by the cost of compensation to the worker, not the worker's spouse or children.

Around 5 million people are affected by this family glitch, and with this change, they will have more options for insurance coverage, according to the Kaiser Family Foundation. An estimated 200,000 uninsured people are also expected to get coverage under the proposed change by the Treasury Department. The proposed change will go into effect from January 1, 2023.

According to the Kaiser Family Foundation analysis, about 85% of the people get caught in the family glitch and pay more for health insurance than people with similar incomes who receive ACA subsidies, which includes more than half of children and 60% of women among adults.