On October 11, 2022, the Internal Revenue Service (IRS) and the Department of the Treasury issued final regulations revising a 2013 interpretation on premium tax credit eligibility for families.

• This change fixes the so-called “family glitch” by extending eligibility for marketplace subsidies to dependents of lower-wage workers who were previously ineligible.
• Before, eligibility for premium tax credit depended on whether the premium for single group medical coverage offered to an employee was unaffordable. Now, it will be based on whether the premium for family group medical coverage is unaffordable.
• Most of the rule goes into effect for the 2023 tax year, meaning family members who qualify can enroll in subsidized marketplace coverage for 2023.
• The final regulations will not affect liability under the employer mandate.

The final regulations only extend premium tax credits to the family members of employees who are not offered affordable group family group medical coverage. It does not affect the eligibility of employees and thus does not implicate the employer mandate.​

Marsha Marrullier, REBC

Sr Employee Benefits Advisor

Corporate Benefits Network, Inc.

Marsha Marrullier, REBC

Sr Employee Benefits Advisor

Corporate Benefits Network, Inc.