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Obamacare: advantage in divorce and disadvantage in marriage?

Many married couples in Nevada are realizing that the "Obamacare" program may hurt their marriages. When studying the program, it becomes clear that they could be better off, financially, to divorce rather than to stay married. In the current economic situation in the U.S., couples are paying close attention to various expenses, like their health care insurance.

The aim of The Affordable Care Act was to provide those who do not qualify for another medical aid or receive health insurance from the company they work for with affordable health insurance. They may even be eligible to receive a federal government subsidy. To qualify for the subsidy, the household income must be about $62,000 per annum. When both spouses of a married couple work, their combined income may disqualify them for the subsidy.

If individuals in a couple each earn $40,000 while single, they both receive a subsidy to buy health insurance on the exchange. The moment they get married, however, their combined income will be $80,000, which will be too high for them to continue receiving subsidies. Another example is a couple with a combined income of $62,000, which is just above the qualification level for subsidies. As a couple, their health insurance premiums on the exchange will amount to $9,000. If they get a divorce, they will receive about $4,000 in subsidies.

These facts regarding the Obamacare program could appear to incentivize divorce and co-habitation. More and more young unmarried couples in Nevada and other states are considering such evidence before committing to a marriage. On the other hand, many happily married couples are seriously considering divorce, in order to better their financial position. Couples thinking about divorce -- for any reason -- would benefit from knowing the best way to proceed.

Source: The Christian Post, Some couples face obamacare marriage penalty, NAPP NAZWORTH, Nov.7, 2013

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