Buyer Beware – Significant Kid-Coverage Issue With ObamaCare

Wisconsin divorce attorney, Linda Vanden Heuvel, is advising all of her clients to be aware of the “kid glitch” in ObamaCare. This problem impacts intact families as well as beware of everything shutterstock_121835134divorcing spouses.  Some families will not be able to take advantage of the tax subsidies championed by the Affordable Care Act.  It’s another example of misunderstanding of the benefits of ObamaCare and an example of the unfortunate accuracy of House Minority Leader Nancy Pelosi’s statement on March 9, 2010, that “We have to pass the bill so that you can find out what is in it.”

Commencing in 2014, tax credits will be provided to taxpayers who purchase health insurance in the open market if they earn less than 400% of the federal poverty level–which amounts to $94,200.00 for a family of four, but taxpayers will not qualify for the credit if they have access to coverage through an employer’s plan.  Here’s the problem, the law defines a family to have access to affordable coverage if the employee can obtain coverage for himself/herself at a cost of no more than 9.5% of the family’s annual household income.  The rules neglect to consider that many businesses now provide health benefits to their employees with less or no coverage to dependents and/or spouses.  This may result in an entire family being disqualified from tax credits, even though only one member of the family has access to affordable employer coverage.  This is an area of many questions and expanding impact.  Families who find themself in this situation should go to www.healthcare.gov/will-i-qualify-to-save-on-monthly-premiums.