Married Couple Considers Divorce to Save Money on Obamacare
Good job Obama. This mess is so complicated that loop holes like this will be common place.
Check it out:
Nona Willis-Aronoqitz, 29, and Aaron Cassara, 32, are full-time freelancers and earn more than $62,000 a year, which means they do not qualify for the subsidies under Obamacare. The couple realized, however, they would be able to afford the plans if they divorce.
But if they applied as unmarried individuals with something like their 2012 income, one of them would get at least $3,964 in subsidies toward the purchase of a plan, or possibly even be eligible for Medicaid, thanks to their uneven individual earnings that year. And if they fall below the 400 percent threshold, which Nona says they might this year, they could get substantial subsidies as a couple that are still worth less than what they’d be eligible for as individuals. These gaps are the marriage penalty.
Ironically, the two married in 2009 because Aaron needed insurance. When they married, Nona had a full-time editor position with healthcare benefits. She was laid off and purchased a COBRA plan, but it expires at the end of January. Aaron is still a freelancer in the film industry, and it would be too expensive to cover him under her plan. If they divorced but still lived together and earned a combined income of $90,000, they would qualify for the healthcare subsidies. These include monthly premium and out-of-pocket costs like copays.