Public Comment Comment Letter on Proposed Regulations Addressing the ACA’s “Family Glitch”
Jason Levitis, Chye-Ching Huang, Michael Kaercher
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On April 5, 2022, the Treasury Department and the Internal Revenue Service (IRS) released proposed regulations to address the so-called “family glitch” under the premium tax credit (PTC). The family glitch prevents certain dependents of employees from qualifying for PTC, and by extension for advance payments of PTC and cost-sharing reductions, through the Affordable Care Act’s (ACA’s) Marketplaces. This comment letter, co-authored with the Tax Law Center at NYU Law, provides an analysis of the statutory and regulatory text that resulted in the family glitch. Based on a close reading of the ACA’s text, the authors conclude that the affordability rule in the 2013 Final Regulation was incorrect, and that the rule in the 2022 NPRM is faithful to the ACA’s plain language, statutory construction, and legislative intent. 

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Research Areas Health and health care
Tags Children's health and development Federal health care reform Health care laws and regulations Health insurance Private insurance
Policy Centers Health Policy Center