Question: If I include my wife and children on my employer’s health insurance, the annual premium will be above 9.5 percent. If i drop my employer’s plan and purchase my own for the family, am i still eligible for tax credit?
Answer: No. The 9.5% affordability test applies to the net employee-only cost of coverage. It does not include the cost of insuring spouse and or children. Therefore, you or your family members are not eligible for a subsidy in Covered California. This is not a Covered California decision. It is an IRS rule.