Biden Proposes Fix to the Family Glitch

A fix to the long-standing “Family Glitch” has been proposed by President Biden. The so-called glitch stopped some family members from being able to get marketplace insurance and assistance if they had access to employer-based coverage that was technically affordable under the ACA rules but not practically affordable.

The law as written said that each family member’s individual coverage offered by an employer had to cost more than very roughly 10% of taxable income. This could result in a situation where family members would pay much more for coverage through an employer than they would through the marketplace. And this can and has in practice led to many remaining without coverage.

The proposed fix seems to offer tax credits to the whole family if the whole family’s coverage costs more than 10%, instead of each member’s coverage being viewed individually. This will bring things more in line with how families are treated in the marketplace itself and will effectively fix the family glitch.

UPDATE: This proposed change has been finalized.

Author: Thomas DeMichele

Thomas DeMichele is the head writer and founder of,, and other websites. He has been in the health insurance and healthcare information field since 2012. is a...

Leave a comment

We'll never share your email with anyone else.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

So, how will it work if two or more family members are offered health insurance for them as an employee and insure other family members? What happens when one has employer health insurance considered affordable for the family but the other one does not? What are the ramifications?

ObamaCareFacts is a free informational site. It's privately owned, and is not owned, operated, or endorsed by the US federal government or state governments. Our contributors have over a decade of experience writing about health insurance. However, we do not offer professional official legal, tax, or medical advice. See: Legal Information and Cookie Policy. For more on our company, learn About or Contact us.