WASHINGTON – U.S. Senators Chris Coons (D-Del.), Al Franken (D-Minn.), and 19 of their Senate colleagues have introduced legislation to help families in Delaware and across the country access tax credits provided by the Affordable Care Act (ACA) to purchase affordable health coverage. The measure, known as the Family Coverage Act, would clarify ACA rules to permit families who cannot afford health plans offered by their employers to utilize tax credits to purchase coverage through the health insurance marketplace.
“The Affordable Care Act guarantees access to affordable health care for every American,” Senator Coons said. “Central to this promise is the availability of tax credits to subsidize coverage for those who can’t afford it. Congress intended for these benefits to extend to all working families, but in its misinterpretation of the law, the IRS has excluded many families who should be eligible for assistance. The Family Coverage Act would fix this mistake, allowing the law to work as it was intended, and giving parents the help they need to purchase affordable health coverage for their families.”
Under the ACA, large employers must offer comprehensive, affordable coverage to employees. If the employees’ share of premiums costs less than 9.5 percent of family income, the coverage is deemed "affordable" and the employee is ineligible for tax credits to help buy health coverage on the health insurance marketplace.
However, the IRS interpreted the law in such a way that health insurance is considered "affordable" if the employee's share of premiums for individual coverage – rather than the more expensive family coverage – is under 9.5 percent of family income. The result is that many middle-class families miss out on tax credits that would make their entire family coverage affordable. Without a change, up to 460,000 children could be left uncovered.
“The March of Dimes commends Senator Coons for supporting efforts to fix the so-called ‘family glitch,’" stated March of Dimes Delaware Chapter State Director Aleks Casper. “The Administration’s current interpretation of the Affordable Care Act leaves some families in limbo, where they have neither access to affordable family coverage through an employer nor access to assistance to get coverage in the marketplace. In some cases, women may be unable to obtain coverage to improve their health before they get pregnant or to receive vital prenatal and maternity care. If passed, this legislation will make a tremendous difference in the lives of Delaware’s women, children and their families.”
In addition to Senators Coons and Franken, the bill is cosponsored by Senators Tim Kaine (D-Va.), Heidi Heitkamp (D-N.Dak.), Angus King (I-Maine), Martin Heinrich (D-N.Mex.), Barbara Boxer (D-Calif.), Sherrod Brown (D-Ohio), Patrick Leahy (D-Vt.), Richard Blumenthal (D-Conn.), Bernie Sanders (I-Vt.), Mark Udall (D-Colo.), Jeff Merkley (D-Ore.), Michael Bennet (D-Colo.), Kay Hagan (D-N.C.), Brian Schatz (D-Hawaii), Jeanne Shaheen (D-N.H.), Tom Udall (D-N.Mex.), Amy Klobuchar (D-Minn.), Tammy Baldwin (D-Wis.), and Mark Begich (D-Alaska).
The bill is also supported by groups across the country, including the Small Business Majority, American Academy of Pediatrics, Children’s Defense Fund, Children's Dental Health Project, Community Catalyst, Consumers Union, March of Dimes, National Health Law Program, National Immigration Law Center, First Focus Campaign for Children, and Children’s Hospital Association.