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Health Authority Submits Comments on Minimum Essential Coverage Regs

JUN. 9, 2022

Health Authority Submits Comments on Minimum Essential Coverage Regs

DATED JUN. 9, 2022
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June 9, 2022

Charles P. Rettig
Commissioner
Internal Revenue Service
Department of the Treasury
111 Constitution Avenue, NW
Washington, DC 20224

RE: IRS REG-114339-21, [RIN 1545-BQ16] Patient Protection and Affordable Care Act; IRS Affordability of Employer Coverage for Family Members of Employees

Dear Commissioner Rettig:

L.A. Care Health Plan — the nation's largest public plan with nearly 2.5 million Medicaid, Cal MediConnect (Dual Eligibles), PASC-SEIU Homecare Workers, and Covered California (State Exchange) enrollees — respectfully submits comments in response to the proposed rule updating the IRS rule on affordability of employer coverage for family members of employees.

It is estimated that the family glitch affects about 5 million Americans, more than half children. About 90 percent do have some form of coverage; most have family coverage through employers that often costs considerably more than 9.61 percent of income. Others have purchased individual coverage without subsidies or coverage that does not meet ACA standards, like short-term plans and about 450,000 are uninsured.

L.A. Care applauds the Administration's efforts to support the state based Exchanges and the safety net health plans. Fixing the family glitch is a vital step towards making health coverage accessible to all family — especially those who are most vulnerable such as our members.

L.A. Care, operates both as a Medicaid and marketplace plan — this allows our members stability if they shift between the two types of coverage. Being a safety net health plan in the market place empowers our members, by providing health care choices and allowing continuity with their chosen providers. We are committed to the promotion of accessible, high quality health care that is accountable and responsive to the communities we serve and focuses on making a difference.

However, L.A. Care would note that the proposed changes do not take into consideration that many families provide coverage for non-dependent children up to 26 years of age. We request that the proposed regulation be amended so the test for affordability includes adult children that are not considered dependent children for tax purposes but who are otherwise offered coverage.

L.A. Care supports the proposed amendment to the regulations which creates greater consistency between the affordability rules in section 36B(c)(2)(C)(i) and the affordability rules in section 5000A(e)(1). This amendment would support efforts to achieve the L.A. Care's goal to provide affordable, high-quality health care for all Americans.

For these reasons, we support the fix of the family glitch and request consideration for our suggested changes. If you have any additional questions or comments, please call Joanne Campbell at @jcampbell@lacare.org.

Sincerely,

John Baackes
Chief Executive Officer
L.A. Care Health Plan
Los Angeles, CA

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