The bad news just keeps on coming. The Affordable Care Act makes being married a big disadvantage when it comes to getting subsidies. You may have heard of the marriage penalty for taxes and now their is the ObamaCare marriage penalty.
Getting a subsidy is what is supposed to bring the cost of ObamaCare down. Depending what you make, you may or may not be eligible for a subsidy. The numbers break out like this: a single person who makes above $45,960 per year will not qualify for any tax breaks and married couples making above $62,040 don’t qualify. Do you see where the problem lies with those numbers? $62,040 is NOT double $45,960.
So, if you have one member of a married couple making $30,000 a year and the other making $40,000 a year, NEITHER of them will get any ObamaCare subsidies because their total income is $70,000 which is higher than the $62,040 cutoff. Yet if they got divorced and still lived together, BOTH of them would qualify for subsidies. The amount in subsidies we are talking about are not trivial either as they could add up to as much as $10,000 or so.
The are a number of scenarios like this where getting divorced will become the financially responsible thing to do. For instance, every home maker Mom who stays at home and makes nothing could get divorced from her husband and qualify for free Medicaid. The husband would then pay for health insurance on his own. Whenever one member of a couple makes less than $45,960 and together they make more than the limit, divorce will be the right dollars and cents decision.
What ObamaCare will do, in its current form, is to explode the number of divorces in this country. The subsidies need to be adjusted so that they are fair and don’t penalize people for being married. This country is going down the drain so fast it makes one’s head spin and the last thing we need is thousands of divorces due to the ObamaCare marriage penalty!