How Do I Provide Coverage for an EX-Spouse?
I have medical coverage from my job. I got divorced, as part of the divorce agreement I agreed to keep my ex – wife covered for medical insurance, not knowing til very recently that my job doesn’t allow that with divorce. Now I am looking into Obamacare… Is there a way I can get Obamacare and cover my ex-spouse. I work full time with a big company…
Answer
The best way to provide coverage for another person who you don't file taxes with is to look into their cost assistance options through ObamaCare first and then look at private or employer options.
You won't be able to get a family plan with your ex-them (since you don't file taxes together) but they may be eligible for health insurance based on their household income and tax family size.
Let's say she makes between 100% - 400% of the Federal Poverty Level, you may be able to (under the terms of your agreement) simply pay her premium after advanced tax credits. Now, let's say you can't do it that way (they are her tax credits and so this is a no fly), in this instance you could ask her to not take advanced tax credits, pay the full premium, and then she gets to collect the tax credits at tax time anyway. At least someone is a winner in this case.
You could also simply buy her an individual health plan outside of the Marketplace. Or maybe you can simply reimburse her for the cost of her coverage only if she gets a family plan.
You could also look into options for coverage outside of work and look into ways you could file together and get a plan together. That being said, you most likely won't want to give up your coverage or perhaps even want to be that intermingled with your ex.
Before the ACA having a divorce settlement include offering health coverage made sense in some instances, these days it can be really awkward. Since cost assistance is based on income there are instances where this sort of arrangement can actually back-fire and be worse for all parities. Of course alimony and other aspects of divorce settlements count as MAGI and affects tax credits and tax rates too, so there is perhaps no easy answer.
The bottom line here is that it depends upon everyones insurance options, filing status, and income... and of course on the exact wording of the agreement. Lots of possibilities, but the right option will be different in every situation.