Affordable Health Coverage

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Affordable Health Coverage


In 2024, a health insurance plan available through your employer is considered "affordable" if the cost to cover only the employee does not exceed 8.39% of the employee’s household income.

♦ Affordability used to be determined on the cost of a "self-only" plan offered by your employer. Meaning a plan covering only the employee, not dependents.

This proved to be a big problem for families and one that came be called the "family glitch".

At the end of 2022, the Biden administration pushed through a rule change to eliminate the "family glitch".

• The rule change first took effect for coverage starting in plan year 2023.

♦ If you are offered job-based coverage through a household member’s job, affordability is now based on the premium amount to cover everyone in the household.

Example (for 2024 coverage):

  • Household’smonthly income = $4,083 (about $49,000 per year).
  • 8.39% of the household’s monthly household income = $343

If the cost to insure the employee only, is less than $343 per month then the employee only plan is affordable for the employee.

If the cost to insure the employee + family members exceeds $343  per month then employer's plan that would insure the family is NOT affordable for family coverage.

• The employee’s household members may qualify for savings in the Marketplace.

The employee would not qualify for savings at the Marketplace. The employee would receive coverage through their employer.

Related content

Affordable Coverage

• What is affordable coverage?

• How is it calculated?

• What is minimum value standard?

• Can my family buy a plan from the Marketplace if I have insurance through my company?