Kaine proposes fix to Obamacare rules on employer coverage

One of the headaches many families have with the Affordable Care Act is the way it figures when an employer's health plan is affordable, Sen. Tim Kaine told his fellow Senators today.

Obamacare says people can buy their own insurance with the help of federal subsidies if the cost of coverage otherwise exceeds 9.5 percent of family income. The problem is that employer coverage is deemed affordable when the employee-only coverage comes in at less than 9.5 percent. Family coverage which usually costs lots more, isn't subject to that 9.5 percent test, Kaine said.

“Because of how the IRS has defined ‘affordable’ in their interpretation of the Affordable Care Act – based on the cost of the premium for the individual versus the cost of the family premium – a lot of spouses and families are cut off from the possibility of receiving tax credits under the ACA," Kaine said.

He's joining with Sen. Al Franken, D-Minn., to sponsor a bill to change that.

###