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DIFS: Federal Proposal to Fix Affordable Care Act "Family Glitch" Could Help More Michiganders Afford Health Insurance

Under proposed rule, approximately 5 million Americans would be able to reduce the cost of obtaining high-quality coverage on the Health Insurance Marketplace

Media Contact: Laura Hall, 517-290-3779, DIFS-press@michigan.gov
Consumer Hotline: 877-999-6442, Michigan.gov/DIFScomplaints

FOR IMMEDIATE RELEASE: April 15, 2022

(LANSING, MICH) Michigan Department of Insurance and Financial Services Director Anita Fox is applauding the federal government's newly proposed rule that would help extend Health Insurance Marketplace premium tax credits to employees unable to afford an employer-sponsored health plan that will cover their entire family.

"People who have comprehensive health insurance typically experience better health outcomes, and this proposed rule, if adopted, would help more Michigan working families access affordable, high-quality health coverage," said DIFS Director Fox. "DIFS stands ready to connect Michiganders with resources and to help answer questions about health insurance. You can call DIFS for assistance, Monday through Friday from 8 a.m. to 5 p.m. at 877-999-6442 or visit Michigan.gov/HealthInsurance."

Under current ACA rules, people who do not have access to "affordable" health insurance through their jobs may qualify for a premium tax credit to purchase a health plan on the Health Insurance Marketplace. However, current rules define "affordable" only as it applies to the coverage available to the employee themselves and not to any family members. Obtaining employer-sponsored coverage for the whole family can be very expensive, potentially putting health insurance out of reach for the approximately 5 million Americans who are affected by the "family glitch".

This new rule, proposed by the federal Treasury Department and the Internal Revenue Service, seeks to address the "family glitch". Employed Michiganders who are offered affordable coverage for themselves but unaffordable coverage for their families would be eligible for premium tax credits to buy a health plan on the Marketplace. Should this proposed change be made, the federal government estimates that approximately 200,000 uninsured people would gain coverage, and nearly 1 million Americans would see their coverage become more affordable as a result of these premium tax credits, with many able to save hundreds of dollars a month or more with a lower premium.

For more information about the Health Insurance Marketplace, premium tax credits, and obtaining health coverage in Michigan, visit Michigan.gov/HealthInsurance or contact DIFS Monday through Friday at 877-999-6442.

The mission of the Michigan Department of Insurance and Financial Services is to ensure access to safe and secure insurance and financial services fundamental for the opportunity, security, and success of Michigan residents, while fostering economic growth and sustainability in both industries. In addition, the Department provides consumer protection, outreach, and financial literacy and education services to Michigan residents. For more information, visit Michigan.gov/DIFS or follow the Department on Facebook, Twitter, or LinkedIn.

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