In the world of health insurance, individual coverage may be affordable, particularly under employer-based plans. But affordable family coverage is harder to find. This can mean the difference between having adequate and affordable coverage and paying a huge chunk of the household income to insure your entire family.

Under the Affordable Care Act (ACA), if one family member has an employer-based plan for individual coverage that’s considered affordable, then other family members won’t be eligible for tax credits for Marketplace coverage. Unfortunately, about six million Americans fall under this umbrella, known as the “family glitch.”

A recent analysis that modeled the impacts of this phenomenon discovered that those who find themselves in the family glitch faced premiums that could add up to as much as 15.8% of gross household income.

The ACA defined employer-sponsored health insurance as “affordable” if the employee contribution for single coverage was not any higher than 9.78% of household income for 2020. This number is adjusted every year by the IRS.

However, current rules only consider the contribution for individual coverage when determining whether employer-backed health insurance is affordable for the whole family, leaving many Americans in the “family glitch”-induced financial bind.

Health Sharing: Keeping Medical Care Affordable

Despite the lack of affordability that many Americans face when it comes to health insurance, there are more cost-effective options that don’t compromise patient care and coverage. Health sharing  have become an increasingly popular option among Americans who are looking for a more affordable and flexible program for their entire family.

In fact, over 2 million Americans have already made the switch and are taking advantage of savings of as much as 30% to 40% compared to traditional health insurance plans. Not only are  health sharing  helping more and more Americans keep more money in their pockets, but they’re also a lot more flexible. Members can choose providers from a huge national network of medical professionals and hospitals. Further, prospective members can enroll at any time of the year instead of having to wait for an open enrollment period.

If you’re looking for a more affordable and flexible alternative to conventional health insurance, consider enrolling in a health sharing  today.