Some married couples would pay thousands of dollars more for the same health insurance coverage as unmarried people living together, under the health insurance overhaul plan pending in Congress.
The built-in “marriage penalty” in both House and Senate healthcare bills has received scant attention. But for scores of low-income and middle-income couples, it could mean a hike of $2,000 or more in annual insurance premiums the moment they say “I do.”
The disparity comes about in part because subsidies for purchasing health insurance under the plan from congressional Democrats are pegged to federal poverty guidelines. That has the effect of limiting subsidies for married couples with a combined income, compared to if the individuals are single.
People who get their health insurance through an employer wouldn’t be affected. Only people that buy subsidized insurance through new exchanges set up by the legislation stand to be impacted.
If the bill passes in its current form, it would be far from the first example of federal and social benefits creating incentives to remain single.
That means small business owners and lower income couples will be hit the hardest.