Health insurance allows you to live in the moment

Almost 700,000 Idahoans get health insurance through their employer; their employer covers most of the monthly premium cost for them. However, many businesses are not financially able to extend that benefit to the employees’ families. With the high cost of health insurance, that leaves the families without health insurance and access to health care.

In 2010, advance premium tax credits were introduced to make health insurance affordable for most Idahoans. Unfortunately, due to an Internal Revenue Service interpretation, many families were still left without access to affordable insurance. This problem is known as the "family glitch." If the employee’s coverage was deemed affordable, no one in the household was eligible for a tax credit on the state’s insurance exchange, Your Health Idaho, regardless of the cost to cover their family. The glitch in the policy is that affordability is determined solely on the cost of coverage for the employee, not the entire family. In many cases, this means families are forced to choose between paying rent and buying food or providing their family with health insurance.

The good news is the glitch is getting fixed. Starting in 2023, affordability is now determined for the employee and as a family separately. If the monthly premium for the employee or the entire family is over 9.12% of the household income, they may qualify for a tax credit. For example, a married couple that makes $40,000 a year might have a monthly employee-only premium of $100, while the monthly premium for the couple combined is $350. The employee only cost is considered affordable, but the combined cost is unaffordable, which means their spouse may qualify for a tax credit. If a family of four has an annual income of $60,000, the employee’s monthly premium is $75 and the monthly premium for the entire family is $475, the employee’s premium is considered affordable where the family premium is not. The family members may qualify for a tax credit.

What does this really mean for Idahoans? More people will now have access to affordable, quality health coverage, and many may even qualify for a tax credit for the first time ever.

If all these numbers are overwhelming, Your Health Idaho’s application process takes care of the math for you. Applying for insurance and a tax credit is done at the same time, on the same application. If you are unsure about when you can enroll or if you are eligible for a tax credit, customer advocates are ready to answer questions and can be reached at 855-944-3246 or at YourHealthIdaho.org.