Nearly all employers allow their employees to add dependents, such as a spouse or a child, to their medical insurance plan. Some companies even pay a portion of the extra premium that results from adding the dependents. As health insurance premiums skyrocketed over the past few years however many employers have scaled back their contributions. This has left employees paying more money out of their paycheck to cover their families.
Employees with family coverage have been searching for a viable alternative that would allow them to cover their families at a lower price. Enter Obamacare. If a family qualifies for a subsidy, which many in the Northeastern and Central Pennsylvania area do, the employee could finally move their dependents from their employer’s health insurance onto an affordable Obamacare plan. But there is a catch. It’s called the family penalty or kid glitch. To qualify for the subsidies that make the Affordable Care Act insurance plans “affordable” the applicant usually cannot have employer sponsored health insurance available. Therefore if a business’s group health insurance plan allows dependents to be covered then the spouse and children will probably not be eligible to get Federal assistance in paying for the coverage.
In reality both employers and employees would stand to save money if they could find a loophole in this family penalty issue. Our suggestion is to make an amendment to your health insurance policy that changes the eligibility to “covers employees only”. This may help employee’s family members to qualify for the subsidies that will make obtaining their health insurance coverage more affordable. This suggestion also applies to businesses that have over fifty employees. These but they are not mandated to cover the employees’ families.
We can help you with this process by not only making the necessary changes to your current health plan but we will also guide the dependents that are affected to find and enroll in quality affordable health insurance plans on the Marketplace. If you have any questions or would like to implement this strategy for your company please give us a call or send us an email.