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AHIP Supports Rulemaking to Fix the “Family Glitch” in Health Care Coverage

Press Release

Published Jun 6, 2022 • by AHIP

Washington, D.C. – June 6, 2022 – Today, AHIP submitted comments in response to the Treasury Department and the Internal Revenue Service proposed rulemaking on Affordability of Employer Coverage for Family Members of Employees (“family glitch”). Here are the highlights:

“Everyone deserves affordable, high-quality coverage choices, whether they obtain coverage through their employer or buy coverage on their own through the Affordable Care Act (ACA) health insurance marketplaces. …We support the Administration’s proposed approach to fix the family glitch so millions of Americans can access premium tax credits (PTCs) to enroll in affordable coverage through the ACA marketplaces.”

“The proposed rule strikes an appropriate balance that will preserve the integrity of the employer market while expanding access to affordable coverage through the ACA marketplaces for those that need coverage. Specifically, by proposing a new affordability test for related individuals, family members of the employee’s household may be determined eligible for PTCs if an employer offer of family coverage is deemed unaffordable. We are pleased to see the rule does not propose changes to the affordability test for employees and thus preserves the employer firewall.”

The approach proposed by Treasury and IRS would make affordable coverage options available to families without jeopardizing coverage through employer-sponsored group health plans.”

The letter recommends some additional guidance that will be necessary to effectuate the rule change, including addressing minimum value calculations, and concludes that the rule should be finalized largely as proposed.

About AHIP

AHIP is the national association whose members provide health care coverage, services, and solutions to hundreds of millions of Americans every day. We are committed to market-based solutions and public-private partnerships that make health care better and coverage more affordable and accessible for everyone. Visit to learn how working together, we are Guiding Greater Health.