Insurance for L2 spouce

[kleo_2004]

Can somebody please help me with advice?

We arrived to the US in the mid May I am on L1 visa and my husband is on L2. My company provides me an employer based insurance, but they did not agree to include my husband into my insurance and I would have to pay monthly $668 which is more than 10% of my monthly income. He is pending EAD authorization and we don`t know how much more time will pass until he can start working and will get his own insurance.

I know that there will be a fine when I fill in my tax form if he is not insured for more than 3 months. Can you please advise for an affordable individual plan that will meet the minimum standards? Or is there a way to claim an obligatory insurance exemption so that we don`t have to pay a fine?

I have read through IRS guidance and I still could not understand where he qualifies.

[kleo_2004]

Your best option is to include your husband in your employer based insurance even if you have to pay. That is normal that many companies don't pay for the dependents.

Thank you for your reply. Is there any way where I can find a cheaper option, as 680$ is not affordable for our budget?
He only needs insurance to avoid a tax fine. We are not going to use it to actually go to the doctor.

Or if we compare the fine, can please someone help me, is it true that the fine would be 2.5% of the yearly income? In this case it would probably be cheaper just to pay that fine.

[kleo_2004]

As we don't deal with PPACA compliant plan, I would be unable to give you the advice. Anyway, the fine is related to the income tax. Therefore, kindly contact your CPA.

In any case, please note that insurance is not just to avoid the fine, but in case something unexpected happens, just accident or major sickness and the healthcare is very expensive in the US.

Thank you, I will redirect this question to CPA.

I know that insurance is very important, and I am sure he will get his own insurance once he gets the EAD and starts working. But in this interim period of 3-5 months it is a great financial burden, that is why we wanted to find some cheapest options to live on this period.

[Eva55]

Can somebody please help me with advice?

We arrived to the US in the mid May I am on L1 visa and my husband is on L2. My company provides me an employer based insurance, but they did not agree to include my husband into my insurance and I would have to pay monthly $668 which is more than 10% of my monthly income. He is pending EAD authorization and we don`t know how much more time will pass until he can start working and will get his own insurance.

I know that there will be a fine when I fill in my tax form if he is not insured for more than 3 months. Can cbd drops you please advise for an affordable individual plan that will meet the minimum standards? Or is there a way to claim an obligatory insurance exemption so that we don`t have to pay a fine?

I have read through IRS guidance and I still could not understand where Zumbalicious crew he qualifies.

Navigating health insurance in the United States can be challenging, especially when you’ve recently arrived and are managing coverage for your family. Since you’re on an L1 visa and your husband is on an L2, you’re already covered by employer-based insurance, but the additional cost to include your husband makes it unaffordable. Fortunately, there are options available to ensure he has coverage without putting undue strain on your finances, and there are ways to avoid penalties if he is uninsured for a short period.

First, it’s important to understand that the federal penalty for not having health insurance was eliminated in 2019. This means that even if your husband does not have insurance, there will be no federal fine when you file your taxes. However, some states—such as California, Massachusetts, New Jersey, Rhode Island, and the District of Columbia—still impose penalties for being uninsured. If you live in one of these states, he may be subject to a state-level fine unless he obtains coverage or qualifies for an exemption. Additionally, the Affordable Care Act (ACA) provides an exemption for short coverage gaps, so if he is uninsured for less than three consecutive months, there would be no penalty even in states with their own mandates.

In terms of finding affordable insurance, one option is to explore the Health Insurance Marketplace through HealthCare.gov or your state’s insurance exchange. Because your employer-provided insurance does not extend to your husband and exceeds the affordability threshold defined by the ACA (9.12% of your income), your husband may qualify for premium subsidies. These subsidies can significantly reduce the monthly cost of an ACA-compliant plan, making it a viable option for him. Since your move to the United States is considered a qualifying life event, you may still be eligible to enroll him in a Marketplace plan outside of the usual Open Enrollment period.

If Marketplace plans are still too expensive, short-term health insurance might be a temporary solution. These plans are typically more affordable but come with limitations, such as not covering pre-existing conditions or essential health benefits. While they do not meet ACA standards, they can provide emergency coverage until your husband’s EAD authorization is approved and he can secure insurance through his own employment.

Medicaid may also be an option, depending on the state you live in and your household income. Some states have expanded Medicaid eligibility under the ACA, allowing more people to qualify for free or low-cost coverage. It’s worth checking if your state’s income limits and rules allow your husband to enroll.

If none of these options are feasible and your husband remains uninsured, you can explore exemptions to avoid penalties. For example, a hardship exemption may apply if insurance costs exceed 8.39% of your household income. Additionally, recent immigrants who do not yet meet certain residency criteria may also qualify for an exemption in some cases.

It’s crucial to review your state’s specific requirements and resources, as rules and penalties can vary. For a clearer understanding of your options and potential exemptions, you may also want to consult an insurance agent or tax advisor familiar with ACA regulations and immigration-related health coverage issues.