The Affordable Care Act is expected to provide around $10 billion in subsidies this year to make health insurance affordable for low- and middle-income people. But a quirk in the law is denying subsidies to a significant number of low-income people, especially those with families.
Benfield has run up against this quirk. To cover only himself, Benfield would have to pay a little more than $2,200 a year. He says he can’t afford that, but that’s an affordable amount, according to Obamacare regulations, and that means Benfield could not get subsidies if he tried to get coverage on the Obamacare exchange.
To be clear, the glitch is related to the employer offering affordable coverage to the employee. If that happens and the employer will allow adding the employees dependents, the dependents are disqualified from being eligible for a subsidy regardless of the cost of the employer offered coverage.