Free tool for agents

Family glitch calculator

Check whether a client’s job-based coverage is affordable under the IRS rules, for the employee and for the family separately, and whether the spouse and children can get Marketplace savings while the employee stays on the work plan.

Everyone on the tax return.

Household MAGI for the coverage year.

The employee’s share for the lowest-cost self-only plan.

The lowest-cost plan covering the employee and every family member offered coverage.

Enter the employee’s share after the employer contribution, not the full premium. For 2027 coverage, job-based coverage is affordable if it costs no more than 10.22% of household income.

The result shows up here

Enter the household income and what the employee pays per paycheck for employee-only and family coverage to see whether job-based coverage is affordable, and whether the spouse and children can get Marketplace savings.

Quote the family’s Marketplace plans

Estimate the subsidy for the spouse and children with the free ACA subsidy calculator, or quote every Marketplace plan with the subsidy applied in QuoteDeck and send the client one link.

Start a free 14-day trialACA subsidy calculator

Questions agents ask

What was the family glitch?
Before 2023, the IRS judged whether job-based coverage was affordable for the whole family by looking only at the cost of employee-only coverage. If that was affordable, the spouse and children could not get Marketplace subsidies, even when adding them to the employer plan cost far more.
How was the family glitch fixed?
A final IRS rule effective for 2023 coverage tests family members separately, using the cost of the plan that covers the employee and every family member offered coverage. If that costs more than the affordability percentage of household income, the family members can get the premium tax credit on a Marketplace plan.
What is the affordability percentage for 2027?
For plan years beginning in 2027, job-based coverage is affordable if the employee’s share costs no more than 10.22% of household income (Rev. Proc. 2026-26). It was 9.96% for 2026.
Can the employee stay on the job-based plan while the family moves to the Marketplace?
Yes. That is the most common result of the fix. The employee keeps the affordable employee-only plan, and the spouse and dependents enroll in a Marketplace plan with the premium tax credit. Family members who enroll in the employer plan cannot get the credit.
Does household income still have to be under 400% of the poverty line?
Yes. For tax years after 2025, the premium tax credit requires household income between 100% and 400% of the federal poverty line, so an unaffordable employer offer only helps families inside that range.
Is there a Special Enrollment Period for this?
Family members who newly qualify for the premium tax credit because the employer coverage became unaffordable can generally get a Special Enrollment Period. Otherwise they switch during Open Enrollment.

Need the household’s poverty line percentage? Use the federal poverty level calculator.

Sources: HealthCare.gov: Job-based coverage and the Marketplace, IRS: Premium Tax Credit, IRS final rule on family member affordability (2022), Rev. Proc. 2026-26.