Fixing the “Family Glitch” in Maine and Nationwide

The Affordable Care Act was a major step forward for health insurance in the United States. For the first time, millions could access healthcare coverage at affordable rates, rather than pay through the nose or avoid seeing a doctor altogether.

But the ACA as it currently stands includes a “family glitch.” In cases where workers can afford employer healthcare plans for themselves, their whole family loses eligibility to buy healthcare plans in the ACA marketplace at a reduced price, even if the employer’s plan doesn’t offer affordable coverage for family members. This issue leaves about 5 million Americans uninsured, 34,000 of whom are Mainers.

Take Winslow resident John Farr, for example. When John was promoted to a coordinator position at the T-Mobile call center in Oakland, his salary was raised just $600 ($50 per month) beyond the limit for MaineCare. While T-Mobile offered health insurance, John didn’t make enough to also cover his wife and three children. It was two years before he could afford healthcare coverage for his family.

But that may soon change. Earlier this week, President Biden announced that his administration proposes to eliminate the “family glitch” once and for all in 2023. By providing families who can’t access “affordable” family healthcare coverage through an employer with a premium tax credit, they will be able to purchase an affordable plan through the health insurance marketplace. This move is expected to lower the cost of healthcare for one million Americans, and cover an additional 200,000 uninsured people. No action from Congress would be necessary to make this change.

“Once today’s proposed rule is finalized, starting next year working families in America will get the help they need to afford full family coverage,” Biden said on Tuesday.

Governor Mills applauded the Biden Administration’s announcement:

“This proposed fix would extend affordable health coverage to an estimated 34,000 people in Maine – a welcome development as we continue our work to expand access to health care in Maine. Having health insurance saves lives, keeps people healthy, reduces costs to families, and keeps people working and contributing to our economy. This fix is good for the health of Maine people and the health of our economy.”

If passed, family members of workers in need of affordable coverage can access it through CoverME.gov, Maine’s Health Insurance Marketplace. After Governor Mills launched CoverME last fall, over 66,000 Mainers obtained healthcare plans through the state marketplace. Maine’s uninsured rate is now 5.1 percent, below the national average. This is just one of many healthcare achievements our leaders in Augusta have made since Governor Mills took office three years ago.

Mainers for Working Families commends our leaders in the Maine Legislature and Governor Mills for their efforts to make healthcare more accessible and affordable. Every Mainer deserves quality healthcare they can afford.

First-Time Homebuyers in Maine Could See Student Debt Forgiveness

For many younger adults in Maine, buying a house seems nearly impossible. The ongoing affordable housing crisis has limited the options available to first-time home buyers, and the heavy burden of student debt prevents many people from saving enough money for a down payment. According to the Portland Press Herald, over 178,000 Maine residents (about 13.3 percent of the state population) have student loan debt, and the average Maine student graduates owing $33,500. Meanwhile, the statewide median sales price of a home is nearly $300,000.

But Maine may help to reduce that barrier in the near future. LD 1978, “An Act To Promote Home Ownership by Reducing Education Debt,” would create a Maine State Housing Authority program designed to forgive up to $40,000 in student loan debt for qualified first-time homebuyers. This is regardless of where the borrower studied or if they graduated.

“Too many of our young people who have worked hard to pursue their chosen profession – professions we desperately need – are saddled with high levels of student debt,” said Sen. Chip Curry of Waldo, lead sponsor of LD 1978. “This prevents them from purchasing their first homes and often forces them to leave Maine.”

To qualify, homebuyers must meet the income eligibility threshold that the MaineHousing’s First Home Loan Program uses and agree to live in their new home for at least five years.

Supporters of LD 1978 see the program as a means of easing the impact of student loans while also benefiting Maine’s economy:

“The situation with student debt is dire. With student loans, car payments, rent, utilities and other basic expenses, it is hard enough to make ends meet, let alone purchase a home,” said Senate President Troy Jackson. “With this program, we can make it easier for young people to create a meaningful and fulfilling life here. We’re counting on young people to fill workforce shortages, keep our heritage industries going and lead our state into the future.”

No person should be prevented from buying a home because they chose to pursue higher education. We applaud Senator Curry for introducing this incredible program and helping Maine’s young adults carve out a long-term future in our state.

Maine Legislature Pursues Affordable Housing Solutions

This legislative session, one of the biggest priorities for our lawmakers is addressing the growing housing crisis in Maine. 1 in 5 Maine renters pay more than half their income toward housing costs, and, for every family living in an affordable, federally subsidized unit, nearly three families are on a waiting list. Experts estimate that the state currently lacks about 20,000 affordable housing units.

The proposed plans to counteract the crisis vary. The Maine Jobs and Recovery Plan, for example, includes $50 million in financing for MaineHousing, which will go towards expanding housing options that are affordable to workers and their families to own or rent. Meanwhile, for those facing the strain of increasing property taxes, Governor Mills has proposed putting $7 million towards increasing the maximum benefit of Maine’s Property Tax Fairness Credit.

Perhaps one of the largest obstacles in the push for affordable housing are zoning laws, which can prevent building houses and other dwellings on certain land or on one’s own property. That’s why House Speaker Ryan Fecteau introduced LD 2003. This bill works off the recommendations of the Commission To Increase Housing Opportunities in Maine by Studying Zoning and Land Use Restrictions, created last year by the Legislature.

WATCH: Speaker Fecteau on Affordable Housing and LD 2003

If passed, LD 2003 would significantly improve conditions for growing Maine’s supply of affordable housing in a number of ways, including:

• Instructing the Department of Economic and Community Development to provide technical and financial assistance to municipalities to help adjust and implement zoning and land use ordinances, as well as incentivize cities and towns to review how their current ordinances may impact housing availability;
  

• Establishing a priority development zone in every municipality, in which multifamily housing/apartments can be constructed in a larger quantity, near community resources; and
  

• Requiring municipalities to permit the construction of accessory dwelling units (ADUs) beginning in April 2023. ADUs are additional, smaller housing units on personal property, such as tiny homes, “granny flats,” and “in-law units,” as well as converted garages and basements with separate entrances.

“Adding more housing to the supply is one piece of this puzzle, but it’s a huge piece,” Speaker Fecteau told us. “This bill, LD 2003, is going to solve a big portion of the challenges that we face.”

Mainers for Working Families applauds Speaker Fecteau for his dedication to the issue of affordable housing in Maine, and we urge our leaders in Augusta to pass LD 2003 this session. Every Mainer deserves a safe, affordable place to call home.