Obamacare’s Uninvited Wedding Guest: A New Health Tax

Rachel Sheffield /

Does marriage provide health benefits? According to the research, it does, but not according to many in Congress. Under the Senate-passed health care bill, couples who choose to wed, or to remain wedded, will face financial penalties cohabiting couples will be spared, even if a married couple makes the exact same combined income as a cohabiting couple.

Robert Rector explains that the “anti-marriage discrimination” found in the Senate bill is due to married couples’ income being counted jointly, reducing the amount of subsidies they can receive for health care. For example, assuming that neither Ben nor Beth, age 20, receives employer health insurance, and each makes $20,000 for a combined income of $40,000, Ben and Beth will receive the same total subsidy that an individual making $40,000 would receive. On the other hand, if Ben and Beth choose to cohabit instead, their incomes would be counted separately and each would receive the subsidy that a person making only $20,000 a year would receive. The difference in this case amounts to $4,317 a year.

(more…)