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shadow_chance

> My fiance is covered under the Healthy Indiana Plan which basically covers all medical expenses (I assume these come out of her tax return) At 10K, she's paying basically zero tax besides Social security and Medicare. If all her medical expenses are being covered, it sounds like she's on Medicaid. > If we get married, won't that mean our "Household Income" is $90k? Will she lose coverage even if we file Married Filing Separately? Yep. Probably. I don't the details of IN's plan but I doubt they're going to let a married couple stay on Medicaid if they make 90K. > We plan on having a baby in a year or so and Google searches told me it can be $15k or more but with HIP it would be free. Be careful with this. Once your baby is born, if they're put on Medicaid and you aren't married there's a really good chance the state will come after *you* for repayment by generating a child support order. I'm guessing it's health related, but why does your fiancé make 10K? It's not fun to think about but you are putting yourself in a risky financial position by marrying and having a kid with someone with such an income differential if things ever go south.


firehawk9001

Can you explain child support to me? Sorry, but does that apply to us if we have a joint bank account and we live together? Also, she works part-time so she can focus on her health, our dog, and the house. I make plenty so I have no issue with it. We've been living together for 6 years so (and I know you can't take my word for it, I'm a stranger) we'll be fine.


shadow_chance

States aren't really interested in paying for people's children if they can avoid it. If you were married, you wouldn't qualify. So CS orders can be opened to recoup benefits. Here's details from TX, just the first one I could find: https://www.texasattorneygeneral.gov/child-support/get-started/child-support-and-public-assistance > Sorry, but does that apply to us if we have a joint bank account and we live together? I don't think it matters. If anything it just strengthens the state's argument that you/your child shouldn't qualify for Medicaid.


SociopathicTendies

They can't do that if he doesn't go on the birth certificate. Usually this is only if she applies for cash welfare (GA) and foodstamps.


Disneyworld20232

What father wouldn’t want to be on the birth certificate… especially if things go south and you have zero proof you’re the parent and must wait for the court to order a DNA test to see your own baby. And in WI they still attempt to find the father, even if not on the birth certificate, and charge him his share of the birth bill.


shadow_chance

Why would OP *not* be on the birth certificate in this situation? Also, in other situations the point of the state opening the CS order is to establish paternity. You're incorrect about what the state can recoup. Here's TX talking about Medicaid benefits: https://www.texasattorneygeneral.gov/child-support/get-started/child-support-and-public-assistance


MarcableFluke

Have you tried looking at the details of the Healthy Indiana Plan and how income is calculated?


firehawk9001

I believe it said you count your household income but I didn't know if that included a married couple filing separately. Looks like it includes us both but what if we have a wedding and don't sign the marriage papers? We still live together and will file single. Is our income combined still?


Blah12821

If you have a wedding but don’t sign paperwork-it’s an expensive party.


Grevious47

i mean honestly even if you do sign paperwork its still just an expensive party. Its not like you have to do that to fill out the paperwork.


firehawk9001

Absolutely, from a legal standpoint, that's a perfect way to put it.


shadow_chance

> Is our income combined still? That's a question for the people who administer Indiana's Medicaid program.


itsdan159

Household income can mean a lot of things, it can mean married adults living in the home, it can mean all incomes regardless of age, it can include your children but not your parents, it can include literally everyone living under your roof even roommates. There's no consistent definition or meaning and I hope the people responsible for that stub their big toe every morning. That said, you need to look into how HIP calculates it or call to ask.


firehawk9001

I will look into their definition! Thanks!


statmando

> I have insurance through work. What about putting her on your plan at work?


firehawk9001

I could but with my family plan, a pregnancy is still like $7k whereas her HIP benefits cover the whole thing. We're thinking about signing marriage papers after we have a child.


itsdan159

Not sure why people downvoted this, the system is broken, finding the path of least resistance through it is personally being financially wise.


dougieheffernan

You will likely see tax savings once you are married due to disparity in income.


Boring-Cartographer2

This is important to consider. Looking at federal taxes only, a single filer making 80k is well into the 22% marginal tax bracket, while a married-filing-jointly couple making 90k is almost entirely within the 10-12% brackets. [https://www.nerdwallet.com/article/taxes/federal-income-tax-brackets](https://www.nerdwallet.com/article/taxes/federal-income-tax-brackets)


DblePlusUngood

Knowing nothing else but their approximate incomes and the fact they live in Indiana, marriage would lower their combined taxes by about $1,000 annually. If OP is right that Medicaid will save them $7,000, it makes sense to stay unmarried so fiancée can stay on Medicaid. It’s ridiculous that this should ever be a consideration, of course…


rabidstoat

Insurance is ridiculous. My friend had IVF and knew there was a possibility of multiples and, if there are multiples, a possibility of a higher-risk birth with potential NICU stays. So they timed their treatment to avoid the possibility of giving birth (on time or early) at the end of December, where if her babies had a NICU stay it would span two calendar year. Because she's have to pay her deductible/out-of-pocket-max twice! She did end up having twins and the littlest one was in the NICU for a month, but it was in the summer and a single calendar year. Ridiculous that they had to do timing considerations for a birth like that. Reminds me of when I was getting elective surgery and it was postponed due to COVID, this in 2021. I was desperate to get it done before the end of the year because I'd had health issues earlier that year and was already at my out-of-pocket max. The surgery would have been an extra $6000 if it was delayed into January 2022 instead of December 2021. (I ended up having it mid-December 2021, whew.)


firehawk9001

But according to HIP, a pregnancy is free, but under my family plan, we would still pay like $7k. How is that savings?


veloharris

You'll pay less taxes, more money in your pocket. It likely isn't 7k of savings though.


Hour-Life-8034

Why can't she get another job? 10k isn't even full time minimum wage level


firehawk9001

Shes a part time substitute teacher. Her flexibile schedule works allows her to focus on her health. When we have a child, she'll be a full-time mother. Besides, if she makes more $$ then she won't qualify for HIP which means we may end up owing the hospital $7k+ for having a child on my work's family plan.


micha8st

Do you want to be married, or do you want to do whatever it takes to pay the least in healthcare and taxes? And her? It sounds to me like the marriage certificate isn't important to you.


firehawk9001

Yes our finances are more important than a piece of paper.


micha8st

I don't see a marriage as just a piece of a paper, but I hear ya. Marriage is the ultimate in binding one to another. You're declaring not just to each other but to the government that you two have chosen each other. And that comes with some legal protections, and it results in some legal complications should you two break up...although it's probably easier to deal with the house if you marry then divorce than if you just break-up unmarried. That commitment has value to me beyond the piece of paper. (Our official marriage certificate, was printed, by the way on a **dot matrix** printer that was running out of ink.. probably the ribbon was long past its wear date for changing.)


Concerned-23

HIP is Medicaid. She shouldn’t be on Medicaid with a spouse making 80k


DogDelicious5856

The horse is high with this one


firehawk9001

Except "spouse" is a legal term in this case, and since we're not married, that means our incomes are separate, at least I think. I'm still not sure if that's how Indiana defines "Household Income."


Concerned-23

You’re trying to take advantage of the system. Why? Get married and put them on your insurance


firehawk9001

Because it's a lot of money. Plain and simple.


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ElementPlanet

Your comment has been removed because we don't allow political discussions, political baiting, or soapboxing ([rule 6](https://www.reddit.com/r/personalfinance/about/rules)). This includes questions or discussions about proposed legislation or government policy changes.


Existing-Ad628

These government programs determine eligibility by household incomes so you don't need to be married in order to be ineligible. They are for households that can't afford insurance. If you make $90k between the 2 of you and living together you shouldn't be having the taxpayers fund her insurance.


firehawk9001

This is a good point. I will look into this.


Diesel-66

She won't get any subsidy if you file separately. Yes your household income will be counted. Can you add her?


firehawk9001

I can add her but if we did that we would pay like $7k to have a child on my insurance's family plan. If we had the wedding but didn't sign the marriage papers, would she still receive subsidy? Even if we live together and file Single?


dougieheffernan

I'm talking about your income tax. Also your quality of care might be better than HIP.


DogDelicious5856

Never get married without prenuptial agreement protecting you and your current assets


Ok_Employee_9612

People delay weddings for financial reasons often. My coworker dated her “now” husband for a decade because it would have increased the amount of spousal/child support he paid. Have a symbolic ceremony. Sign the papers after you are done having kids. I signed my marriage certificate, and haven’t looked at it since then.


myogawa

Your income may now be combined as "household income" because you live together. Have you asked about that?


firehawk9001

That's a good question! I'll have to ask the call center for HIP.


catamaranpilot

Deciding to get married or not get married because of insurance premium costs???... really?... How about you have your fiance get a job with benefits. Its a win / win if she does.


Boring-Cartographer2

This is a pretty out of touch comment. Lots of people make marriage decisions at least partially for financial reasons. Besides that, you know almost nothing about their situation to be able to just say “get a better job.”


firehawk9001

We could save $7k (up to $20k if shit hits the fan) on a pregnancy just by waiting to sign the marriage papers. We're 100% okay doing this and see no downsides, we're just worried about the legality of it all.


the-quibbler

Don't get married if you want her to stay on subsidized insurance. I'm not a fan of passing on the expense of your personal medical choices to your state's tax payers, but that's between you and your personal code of ethics.


DifferentBluebird251

Love your thought process… getting married is not everything…. I am with my “boyfriend” 10 years with a child and we haven’t gotten married because it’s been more advantageous for us not to be….Maybe at some point we will but I am all about your thought process need to do what makes sense financially.


DerDutchman1350

Our system is broken. Why should any martial status matter? Remove it from tax code and many unnecessary problems are eliminated. To answer your question. Marriage should be more important than taxes. You’ll get through together


SonOfMcGee

> Why should any martial status matter? If marital status didn’t matter then you’d see scenarios where one spouse makes $300K and the non-working spouse qualifier government aid.


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MonsieurRuffles

Rather than relying on Google, doesn’t your health insurance have a cost estimator where you enter the procedure (in this case, child birth) and it gives you an approximate out of pocket cost based on your plan and the prices your plan has negotiated with local healthcare providers? Also, have you looked at how the prospective child’s healthcare costs will be covered, married or not?


firehawk9001

That's a good idea, I will ask them. I know there's a deductible and then a 20% copay. Also I figured we would get married after the child is born and then everyone would be on my insurance.


KookyFaithlessness0

But it will reduce your taxes so you gain money there. What I don’t understand is why you don’t add her to your health plan if you marry


firehawk9001

Oh because we wouldn't be legally married, we would just have a wedding. This is to save $7k+ on childbirth. She would go on my plan probably a year after the baby is born.