Save Big on Family Health Insurance: The Family Glitch Explained
Open enrollment is in full swing, with the December 15 deadline fast approaching for a January 1 coverage start date. While many employees receive health insurance through their employers, covering your family under the same plan can be overwhelmingly expensive. Here’s where the “Family Glitch” comes into play—a little-known solution that could save your family thousands.
What Is the Family Glitch?
The “Family Glitch” refers to a scenario where an employer offers health insurance to employees but doesn’t subsidize coverage for family members. While employers must pay 50% of the employee’s premium for the lowest-cost plan, they aren’t required to contribute to the cost of adding dependents. This often results in prohibitively high premiums for families
The good news? Under the Family Glitch, family members may qualify for a marketplace plan with a tax credit. This credit significantly reduces the cost of coverage compared to adding them to the employer’s plan.
How the Family Glitch Works
To determine eligibility, I’ll assess:
- The Employee’s Premium: The cost of the lowest plan offered by the employer.
- The Family’s Premium: What it would cost to insure your family on the employer’s plan.
- Your Household Income: This is used to calculate potential subsidies through the marketplace.
Once these details are entered, I can determine if enrolling your family in a marketplace plan with tax credits is a more affordable option.
Is It Always Better to Use the Family Glitch?
Not necessarily. While savings can be significant, other factors may affect your decision, such as:
- Doctor Preferences: If you want a specific network or provider not included in marketplace plans.
- Out-of-Pocket Costs: Marketplace plans might save on premiums but could have higher deductibles or co-pays.
However, many families find the savings on monthly premiums outweigh any additional out-of-pocket expenses.
Act Now Before the December 15 Deadline
The window for enrolling in a marketplace plan for January 1 coverage is closing soon. If you’ve been struggling with high premiums for your family under your employer’s plan, now is the time to explore alternatives.
Let’s Find the Best Option for Your Family
Don’t navigate this alone! As a broker, I’ll review your situation, calculate potential savings, and ensure your family gets the coverage they need. Schedule a consultation today at jkappconsulting.com. I offer evening and weekend appointments to fit your busy schedule—don’t wait!
Let’s make health insurance work for you. See you next week!
