Family Health Care Affordability Act of 2022
Bill: H.R.7230 | Sponsor: Rep. Wild, Susan (D-PA)
Policy area: Taxation

Summary:
Family Health Care Affordability Act of 2022
This bill modifies the requirement for determining the affordability of employer-sponsored minimum essential health care coverage under the Patient Protection and Affordable Care Act (PPACA). (Under current law, the coverage is unaffordable, and an employee may be eligible for premium assistance tax credits, if the employee's required contribution for an individual plan exceeds 9.5% of household income.)
The bill specifies that, with respect to an employee's family members who are eligible to enroll in the plan, affordability must be determined using the cost of family coverage rather than individual coverage to expand the eligibility of families for premium assistance tax credits.

To amend the Internal Revenue Code of 1986 to expand affordability of 
                 health insurance for working families.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Family Health Care Affordability Act 
of 2022''.

SEC. 2. EXPAND AFFORDABILITY FOR WORKING FAMILIES.

    (a) In General.--Clause (i) of section 36B(c)(2)(C) of the Internal 
Revenue Code of 1986 is amended to read as follows:
                            ``(i) Coverage must be affordable.--
                                    ``(I) Employees.--An employee shall 
                                not be treated as eligible for minimum 
                                essential coverage if such coverage 
                                consists of an eligible employer-
                                sponsored plan (as defined in section 
                                5000A(f)(2)) and the employee's 
                                required contribution (within the 
                                meaning of section 5000A(e)(1)(B)) with 
                                respect to the plan exceeds 9.5 percent 
                                of the employee's household income.
                                    ``(II) Family members.--An 
                                individual who is eligible to enroll in 
                                an eligible employer-sponsored plan (as 
                                defined in section 5000A(f)(2)) by 
                                reason of a relationship the individual 
                                bears to the employee shall not be 
                                treated as eligible for minimum 
                                essential coverage by reason of such 
                                eligibility to enroll if the employee's 
                                required contribution (within the 
                                meaning of section 5000A(e)(1)(B), 
                                determined by substituting `family' for 
                                `self-only') with respect to the plan 
                                exceeds 9.5 percent of the employee's 
                                household income.''.
    (b) Conforming Amendments.--
            (1) Clause (ii) of section 36B(c)(2)(C) of the Internal 
        Revenue Code of 1986 is amended by striking ``Except as 
        provided in clause (iii), an employee'' and inserting ``An 
        individual''.
            (2) Clause (iii) of section 36B(c)(2)(C) of such Code is 
        amended by striking ``the last sentence of clause (i)'' and 
        inserting ``clause (i)(II)''.
            (3) Clause (iv) of section 36B(c)(2)(C) of such Code is 
        amended by striking ``the 9.5 percent under clause (i)(II)'' 
        and inserting ``the 9.5 percent under clauses (i)(I) and 
        (i)(II)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2021.
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