Representative Angie Craig Applauds Biden Administration Step Toward Closing the Family Glitch in the Affordable Care Act

WASHINGTON, DC — Today, U.S. Representative Angie Craig applauded the Biden Administration's progress toward fixing the "family glitch" in the Affordable Care Act's subsidized marketplace coverage – a step that could save 62,000 Minnesotans thousands of dollars annually on their health insurance premiums. The Administration recently submitted a proposed rule change to the Office of Management and Budget for review, a necessary step toward officially addressing the issue.

Craig has prioritized fixing the glitch in the 117^th Congress – which has resulted in some Minnesota families paying nearly a quarter of their household income on premiums due to a longstanding gap in eligibility for the Affordable Care Act's subsidized marketplace coverage. Last year, Craig repeatedly called on the Biden Administration to resolve the glitch arguing that such a step would align with President Biden's commitment to lowering out-of-pocket health care costs for the American people.

"In Congress, I've worked tirelessly to support and strengthen the Affordable Care Act – and to take steps that would lower out-of-pocket health care costs for American families," said Representative Craig. "Today, I am relieved to see the Biden Administration taking the first step toward fixing the ‘family glitch,' which has made health care unaffordable for more than 5 million families nationwide. This proposed change would provide long overdue relief for thousands of Minnesotans – and I encourage the Biden Administration to enact it as soon as possible."

The family glitch originated from a 2013 Internal Revenue Service and Department of Treasury rule, which determined that families are ineligible for financial assistance if a family member is offered "affordable" employer coverage. In 2021, the affordability threshold was 9.83%, which means that an individual qualifies for subsidized marketplace coverage if their employer health insurance premiums exceed 9.83% of household income. However, this threshold does not take into account the cost of covering the rest of the household, which can make coverage prohibitively expensive for many families.

A recent analysis estimated that 5.1 million people nationwide are impacted by the family glitch, including 62,000 Minnesotans. In Minnesota, the average annual premium for an individual is $6,904 and the average annual family premium is $20,751. Under the glitch, a family with a household income of $85,000 would not qualify for premium tax credit assistance even if they paid the average family total, which would amount to more than 24% of their household income.

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