For Immediate Release:
Contact: Kelly Broadway, 202-808-8853
Washington, DC (June 7, 2022) – The Council for Affordable Health Coverage (CAHC) and the Health Benefits Institute (HBI) submitted joint comments to the Internal Revenue Service as it considers solutions to the so-called “family glitch.”
“There is no question that the ‘family glitch’ must be fixed, but the current proposal is not the answer. Driving up costs on employer-sponsored health insurance and pushing more Americans into the government-subsidized ACA markets creates new problems – it doesn’t solve them. It is time to go back to the drawing board and find a solution that works for everyone,” said Joel White, President Executive Director, Council for Affordable Health Coverage.
CAHC and HBI focused their comments on three specific areas:
- Erosion of Employer Coverage: An increase in the cost of job-based dependent coverage for workers, while lowering the value of insurance provided will push more people into the ACA marketplace.
- Reporting Requirements: No new burdens should be placed on employers. Employers should not be tasked with additional reporting requirements or forced to make determinations about the employment status and health coverage of employees’ family members.
- Legal Authority: CAHC and HBI question if the Administration has the legal authority to make this rule. If implemented and later struck down by the courts, both employer-sponsored health insurance and the ACA markets will be destabilized.
“Ensuring that all Americans can access cost-efficient healthcare should be priority number one for the Administration when addressing the ‘family glitch,’ but they must approach the issue thoughtfully with policy solutions that encourage a competitive healthcare market, not one that raises costs and limits access to care,” J.P. Wieske, Executive Director, Health Benefits Institute.