How Is Health Insurance Calculated in Child Support?

Child support is a system designed to provide financial assistance to children who are living with one parent after a separation or divorce. One of the most significant expenses involved in raising a child is health care which includes medical expenses health insurance premiums. In this article we will discuss how health insurance is calculated in child support.

Determining Health Insurance Responsibility

Often a court order or child support agreement will outline which parent is responsible for providing health insurance for the child. The primary caregiver or the parent who has the child for the majority of the time is usually responsible for providing health insurance.

If neither parent has access to affordable health insurance they may be required to share the cost of premiums or seek assistance from government programs. In some situations the cost of the insurance may also be split between both parents.

Calculating Health Insurance Premiums

Child support calculations take into account the health insurance premium that the paying parent pays for the child’s health insurance policy. The premium is added to the basic child support obligation is then divided between the parents according to the percentage of their income.

For example if a couple has three children the noncustodial parent pays 75% of the basic child support obligation they will be responsible for paying 75% of the child’s health insurance premium. If the total cost of the insurance premium is $1200 per year the noncustodial parent will need to pay $900 annually towards the cost of health insurance.

Cost Sharing Agreements

In some cases both parents may be required to share the cost of the health insurance premium. The cost-sharing arrangement is made based on each parent’s income level. The calculation is done by determining the percentage of each parent’s income which is then used to determine the amount of the premium that each parent is responsible for paying.

For instance if the custodial parent’s income is $20000 a year the noncustodial parent’s income is $50000 the amount paid towards the health insurance premiums would depend on how the cost-sharing is split.

Conclusion

Child support is an essential component of ensuring that both parents are contributing to the cost of raising a child. Health insurance is a significant expense that must be taken into account when calculating child support payments. In summary the responsibility of providing health insurance is determined through court order or agreement the cost of the insurance premium is divided between the parents based on their income level. Cost-sharing agreements can also be made if both parents are required to share the cost of the health insurance premium.