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June 28, 2019 Outreach and Enrollment News

Author: Amanda Tekely/Friday, June 28, 2019/Categories: Outreach News

Did You Know?

Alimony from divorces and separations finalized before Jan. 1, 2019 is considered as income. Alimony from divorces and separations finalized on or after Jan. 1, 2019 is not considered income. The spouse paying the alimony is also ineligible for a tax deduction. The receiving spouse will no longer need to pay tax on the alimony payment as it is not considered income. While, at first, this might look like good news for the receiving spouse, it is actually not. This is because the total money available to both spouses will undoubtedly shrink. For example, under the old law, the husband would get a deduction for $150,000 (husband's tax bracket rate is 35%) and the wife pays income tax on $150,000 at 24% tax bracket rate. Under the new law, the husband pays income tax on $150,000 (his tax bracket rate is 35%). There is no deduction and the wife does not pay income tax on $150,000. See Healthcare.gov for more information on income.  Also see IRS Publication 504.


Individual Insurance Marketplace Still Profitable for Insurers

According to research from the Kaiser Family Foundation, data from the first three months of 2019 indicates insurers remain profitable even with average premiums falling for the first time since the ACA implementation. Medical loss ratio, margins and trends attribute to the analysis results. Large increases in premiums for 2018 were compensating for uncertainty in the market including repealing the individual mandate. The insurers could not use this same rational for 2019. To read more, click here.


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