I just received a call from a client who said "What about the kids? If coverage is affordable at work for me but not when I add my children and/or spouse, then what?" Well, that's a great question. Since affordability is only contingent on the cost as it pertains to individual cost and earnings (no more that 9.5% of W-2 income), it doesn't take into consideration the financial impact of family health care costs. So, depending upon the income level of the family, the children may be eligible for the Children's Health Insurance Program or "CHIPS". In addition if the household income does not qualify them for the CHIPS program, Children Only health plans will be made available on the exchange at the same coverage levels as adults (bronze, silver, gold, platinum, etc). It is also important to note that there are tax penalties associated with not having medical coverage starting January, 2014 (Individual Mandate). However, in a separate proposed regulation the IRS stated that uninsured children and spouse of an employee will not be subject to the individual mandate if the cost of coverage for the entire family was more than 8% of household income. Of course that will be up to each individual family to prove to the IRS.
