Until 2023, a family was locked out of Marketplace subsidies whenever the employee’s own coverage was affordable — even if adding the family cost far more than they could pay. That was the family glitch, and it has been fixed: affordability for the family is now tested on the cost of family coverage.
This tool applies officially published figures to the numbers you enter. It is not an insurance quote, it is not an eligibility determination, and it does not predict what a carrier will charge you. Only HealthCare.gov, Medicare.gov, Social Security or the carrier can determine your eligibility and your actual price.
ACA Family Glitch: how it works
The two tests are separate
The employee is tested on employee-only cost. The family is tested on family cost. One can pass while the other fails, and that is the whole point of the fix — it is common for employers to subsidise the worker heavily and the dependants barely at all.
A split household is normal here
The usual outcome is the employee staying on the job plan while the spouse and children take a subsidised Marketplace plan. Two plans sounds untidy, but it is often several thousand dollars a year cheaper, and it is entirely permitted.
Common questionsCommon questions
Where does 10.22% come from?
It is the required contribution percentage for plan years beginning in 2027, set by the IRS in Rev. Proc. 2026-26. It is indexed annually — for 2026 it was 9.96%.
Does this apply to ICHRA offers too?
ICHRA affordability works differently — it compares the employer’s reimbursement against the lowest-cost Silver plan where you live. Use the ICHRA calculator for that case rather than this one.