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    Family Glitch Calculator

    Check whether employer coverage meets the affordability standard for an employee and their family.

    ACA Affordability & Family Glitch Determination

    Client Worksheet • Plan Year 2027 (10.22% IRS Affordability Standard)

    Prepared via ACA Training Ground • Generated November 2, 2026

    ACA Training Ground
    Affordability Conclusion

    Family Glitch Triggered — Dependents May Have Marketplace Options

    Marketplace Options

    Employee-only coverage is AFFORDABLE (8.51% of income, at or below 10.22%), but family coverage is UNAFFORDABLE (29.31% of income, exceeding 10.22%). The employee may stay on employer coverage while eligible dependents explore Marketplace coverage and potential financial assistance.

    1. Case Inputs & Employer Offer Summary

    Projected Tax Household Income$55,000.00/year
    Payroll Deduction Frequency26 deductions per year
    Employee-Only Contribution (Lowest Cost Plan)$180.00 per deduction
    Family Coverage Offered by Employer?yes
    Total Family Contribution (All Offered Tax Family)$620.00 per deduction
    Plan Meets Minimum Value (≥ 60% actuarial value)?yes

    2. Affordability Standards Comparison

    Employee-Only Planaffordable
    Monthly Premium:$390.00/mo
    Annual Cost:$4,680.00/yr
    Percent of Income:8.51%
    Affordability Limit (10.22%):$468.42/mo
    Family Plan (Total)unaffordable
    Monthly Premium:$1,343.33/mo
    Annual Cost:$16,120.00/yr
    Percent of Income:29.31%
    Affordability Limit (10.22%):$468.42/mo
    ACA Training Ground • Family Glitch CalculatorPage 1 of 2 — Detailed Calculations on Page 2 →

    Calculation Breakdown & Statutory Limits

    Detailed mathematical audit for client file and compliance verification

    Household Income: $55,000.00

    Statutory Formulas & Step-by-Step Computations

    A. Affordability Limit (2027 Threshold: 10.22%):

    10.22% × $55,000.00 = $5,621.00/year

    $5,621.00 ÷ 12 months = $468.42/month

    Any plan requiring employee contributions greater than $468.42/month is legally unaffordable.

    B. Employee-Only Plan Contribution:

    $180.00 × 26 pay periods = $4,680.00/year ($390.00/month)

    ($4,680.00 ÷ $55,000.00) × 100 = 8.51% of income

    Affordability test: 8.51% ≤ 10.22% → affordable

    C. Total Family Plan Contribution:

    $620.00 × 26 pay periods = $16,120.00/year ($1,343.33/month)

    ($16,120.00 ÷ $55,000.00) × 100 = 29.31% of income

    Affordability test: 29.31% > 10.22% → unaffordable

    Why Two Separate Affordability Tests?

    Under Treasury Regulations finalized in 2022, employee affordability is evaluated based on employee-only premiums, while family affordability uses the total family premium. When family coverage exceeds the threshold, dependents qualify for Marketplace subsidies while the employee can remain on the group plan.

    Agent Compliance & Verification Checklist
    • Confirm lowest-cost qualifying plan on employer summary
    • Verify premium covers employee plus offered tax family
    • Review SEP eligibility and enrollment timeline

    Disclaimer: Educational estimate only. This tool evaluates employer coverage affordability under IRS Revenue Procedure rules; it does not determine final Marketplace eligibility, premium tax credits, or enrollment rights.

    Source: https://www.healthcare.gov/glossary/affordable-coverage/Page 2 of 2

    Employer Coverage Inputs

    Enter values from the employee's paycheck stub or employer offer letter.

    Selected threshold: 10.22% of household income (IRS Rev. Proc. / Marketplace Affordability Index (2027)).

    $

    Enter projected annual household income used for Marketplace eligibility, not take-home pay.

    Clearly distinguishes Every two weeks (26) from Twice monthly (24).

    $

    Employee's share after employer contribution for lowest-cost single plan meeting Minimum Value ($0 if 100% employer paid).

    $

    This is the TOTAL employee-paid family premium, including the employee, not just the additional cost of dependents. Exclude individuals outside the employee's tax family.

    Minimum value generally means the plan covers at least 60% of expected allowed costs and includes substantial physician and inpatient hospital coverage.

    Your family may have Marketplace options!

    Employee-only coverage is affordable (8.51% of income), but family coverage is unaffordable (29.31% of income, exceeding the 10.22% threshold).

    The employee may remain on employer coverage while eligible family members explore Marketplace coverage and potential financial assistance.

    Employee-Only Coverage

    Evaluates employee affordability

    Affordable
    Monthly Equivalent:$390.00/mo
    % of Household Income:8.51%
    Monthly Limit (10.22%):$468.42/mo
    Per Deduction Cost:$180.00

    Family Coverage

    Evaluates dependent tax-family affordability

    Unaffordable
    Monthly Equivalent:$1,343.33/mo
    % of Household Income:29.31%
    Monthly Limit (10.22%):$468.42/mo
    Per Deduction Cost:$620.00
    Apply for Savings

    Why are there two affordability tests?

    Employee affordability uses the employee-only cost, while family affordability uses the relevant total family premium.

    If employee-only coverage is affordable but total family coverage is unaffordable, dependents may qualify for Marketplace tax credits while the employee stays on group coverage.

    Agent Verification Checklist

    Verify employer premiums, minimum value, other coverage offers, and enrollment eligibility before making a recommendation.

    • Confirm lowest-cost plan pricing from the employer benefit summary or offer letter.
    • Ensure the family premium includes the employee + dependents, not just dependents.
    • Verify enrollment timing and potential Special Enrollment Periods (SEPs).
    Calculations run locally in your web browser. No entered financial or personal information is sent to a server or saved.

    Educational estimate only. This tool evaluates employer coverage affordability; it does not determine final Marketplace eligibility, premium tax credits, or enrollment rights.

    Source link: https://www.healthcare.gov/glossary/affordable-coverage/