March 8, 2012
The U.S. Treasury Department has drafted a rule providing guidance on making determinations on whether an offer of employer coverage is deemed affordable for an employee. According to the proposed rule, the test to determine whether an employer-sponsored health plan is affordable for an entire
family is based on the costs of coverage for the individual
employee only. It does not take into account what coverage for the family costs. This is particularly problematic given that employee-only insurance premiums average about $5,400 per year, while annual employee-and-family premiums are nearly triple the cost, at $15,000.
This letter, signed by over leading national, state, and local advocates concerned about the health and well-being on America's children, calls on the county's leaders to fix this "family glitch," and make sure the test to determine coverage is affordable for a family is based on the share of income it costs to cover an entire family and not solely on the cost of coverage for an individual employee.
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