Another Obamacare loophole is discovered.

Save money on Obamacare

Just when we think it can't possibly get any better, we learn about new money saving loopholes available in the Obamacare plan.

UPDATE 1/9/15

I just learned today that those eligible for Federal assistance to help pay for their Obamacare may be in for a big shock. The Federal dollars they receive will be treated as taxable income when they file their taxes. I'm reasonably sure none of them were told this fact or understood this when they signed up for Obamacare.

Loophole #1 - Part Time Employees

Employers with over 50 employees were quick to learn that cutting all of their employees to part-time status exempted them from paying for Obamacare. The definition of part-time employees was determined to be any employee working less than 30 hours per week. For many employers, this was the gift they needed to save their business. Large restaurant chains immediately decided to begin using part-time employees was the way to go, and they did.

Almost overnight, thousands of formally full-time employees found themselves reduced to part-time status and scheduled for 29 hours or less per week. This was a huge financial blow forcing many employees to seek yet another part-time job to pay their bills.

This loophole was great for employers, but did nothing for individuals who didn't mind working 40 hours per week that is. There will of course be those who feel that asking them to work 29 hours per week is cruel and unusual punishment.

As little as one week ago today Jay Carney and President Obama were still claiming this was not happening, but it is.

Loophole #2- Get a divorce

In the interest of fairness, the government has now come up with a very simple solution for married couples to save large sums of money on Obamacare.

This money saving loophole is quite simple. Get divorced! It's just that simple, get a divorce and your Obamacare costs are dramatically cut because you may be eligible for subsidies.

For a married couple, the costs of Obamacare are based on their combined income. If both of them are employed and making decent wages, their combined income will put them into the highest price category for Obamacare, and make them ineligible for subsidies.

A married couple in their 60's with no children living with them are limited to a combined annual income of $62,041 or their Obamacare premiums will go way up. If they stay married, their Obamacare premium would be $16,382 next year.

If they divorce and continue living together, they can save a great deal of money. Unmarried individuals are allowed to earn $45,960 before they lose their Obamacare subsidies. As single persons the divorced couple can each report an annual income of $31,020.50 giving them a combined net Obamacare premium of $5,354 for the year. By getting divorced, they save $11,028 per year on Obamacare premiums.

Another example of how this loophole would work concerns a 40 year old married couple with two children. Their combined annual income is $93,000, and subsidies disappear at $92,401 for married couples with two children. They would pay $11,547 in Obamacare premiums next year.

If this couple gets divorced and they give child custody to the spouse with the lower income, one would pay $3,857 and the other would pay $460 for a total of $4,317. Getting divorced would save them $7,230 next year.

Now how is this for a simple solution?

Who benefits the most?

Now let's see who would benefit the most from this loophole. Obviously the used-to-be-married couples saving over $10,000 per year will benefit. The big winner will probably be the Divorce Lawyers who will have people waiting for their services. I would expect to start seeing TV ads for Divorce Lawyers who can handle the whole divorce for you over the internet.

Because Obamacare is being administered by the IRS, is it any wonder that loopholes in the law would pop to the surface? The IRS played the loophole game for years. They seem to favor special interest groups who are able to buy their own loophole through the services of a lobbyist.


Be careful because some states have laws limiting the time a couple can cohabit and claim they are not married. This would require some couples to remarry on Monday and get divorced again on Friday.

The IRS will also be watching for couples claiming not to be married so they may collect Obamacare subsides. Those who are caught by the IRS "Marriage Police" can be forced to pay back all of the undeserved tax credits they collected. This could amount to a substantial amount of money.


Don't be surprised if that nice young couple next door announces they are getting divorced. It is not because they no longer love each other, it is merely a way they will be able to afford their health care premiums in the coming years.

This is what I was looking for........

It is important to be able to recognize a loophole when one appears. This is what they look like.

Would you consider divorce to save money on Obamacare?

Would you consider divorce to save money on Obamacare?

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More by this Author


tsadjatko profile image

tsadjatko 3 years ago from maybe (the guy or girl) next door

Mike - great hub! I guess you might say Obamacare does have benefits - it's unintended consequences are actually the best part of the law for certain groups. For the RICH early retirees who are not on Medicare yet and are buying their own medical insurance, they will get TOTALLY FREE insurance coverage. You must be rich enough to take advantage, so the poor and middle class are probably left out of this wonderful opportunity. The only criteria for eligibility for thousands of dollars of Obamacare health insurance subsidies is TAXABLE income in 2014 and later. So just accept minimal TAXABLE income from your pension, (suspend your SSA for a while if necessary) and use Roth IRA money or cash savings, or loans to live on until you are eligible for Medicare. Doing this in 2014 will allow one guy to be eligible for around $5,363 of Obamacare health insurance subsidy and the plan he is electing from his state insurance exchange is going to cost him $5,372. His total medical insurance expense under Obamacare for the year will be $9.00 !!!

...tip of the iceberg. Remember, the subsidies in Obamacare are presented as tax credits. That means that you've got till April 15 of the following year to make sure to hit the proper income targets to minimize taxes. Every tax accountant in America will be studying Obamacare to figure out the loopholes.

Obamacare might as well be titled "The Tax Accountants' and Divorce Lawyers' Full Employment Act"

WillStarr profile image

WillStarr 3 years ago from Phoenix, Arizona

The Obamacare sticker shock is also beginning to take effect. Far from saving $2,500 per family, it is costing $7,500 more, a $10,000 swing from what Obama promised!

In fact, everything about it is higher, including premiums, deductibles, and co-pays. And, contrary to what was promised, you cannot keep your doctor or your current coverage. All of it was a lie.

Good Hub, Mike!

tsadjatko profile image

tsadjatko 3 years ago from maybe (the guy or girl) next door

But Sarge! Sarge! you mean the "Messy ah Barack (who's sane?) Obama knowingly lies to US whenever he opens his mouth? Well shaazaaaam!

billybuc profile image

billybuc 3 years ago from Olympia, WA

Mike, you always tell it like it is and I'll always respect that. This is one of those turkey shoots I'll stay out of since it doesn't affect me and I've already tied my wagon to far too many battles as it is. Well done my friend.

Old Poolman profile image

Old Poolman 3 years ago from Rural Arizona Author

tsadjatko - My first hub in almost a year, and I still didn't do it right. When I read about this loophole this morning it was just too good to pass up. I forgot about the Tax Professionals being able to share the wealth of this loophole. Thanks for stopping by and reminding me.

Old Poolman profile image

Old Poolman 3 years ago from Rural Arizona Author

WillStarr - As always, great seeing you on here and thanks for the comment. Your right, the true costs are starting to show up and now those who thought this was "Free" healthcare are starting to see the big picture. Obama wanted this to be his legacy, and by gosh it will. I hope the history books tell the truth on this one.

Old Poolman profile image

Old Poolman 3 years ago from Rural Arizona Author

Bill, thanks for stopping by. Now that the truth on Obamacare is there for everyone to see, there is not much more that needs to be said about it. The facts will speak for themselves and now everyone will know they were lied to. There will be a few who still believe this was a giant step forward for our country, but eventually even they will have to admit it was more like a giant mistake.

tsadjatko profile image

tsadjatko 3 years ago from maybe (the guy or girl) next door

You got it right - there are probably so many loopholes they'll be showing up for years - few still know what is in the bill let alone how to game it.

Old Poolman profile image

Old Poolman 3 years ago from Rural Arizona Author

tsadjatko - Your absolutely correct. For many, this is like opening the doors to a previously untapped gold mine. There are gold nugget just lying there waiting for someone to pick them up.

The could be more gold in Obamacare advising than there was in preparing tax returns. Perhaps the big tax preparation agencies will jump on this train and quit fighting things like the fair tax, or implementing a National Sales Tax to replace our current monster.

Don't be surprised if we start seeing ads for "H & R Block Obamacare experts." They could use some of this Obamacare gold to offset what they have spent on lobbyists to fight changing the current tax collection system.

FitnezzJim profile image

FitnezzJim 3 years ago from Fredericksburg, Virginia

Pugilistic politicians posturing protection punish people with the nurturing care of the stressful and strained product of liberal loophoping lawyers, constitutionally passed through the sieve of our supreme justice.

(same thing that that happens when royalty is on a bread and water diet)

Old Poolman profile image

Old Poolman 3 years ago from Rural Arizona Author

Great comment Jim.

The Frog Prince profile image

The Frog Prince 3 years ago from Arlington, TX

Actually they redefined a full time employee as anyone working 30 hours or more. That even has the unions howling now that employers read that handwriting on the wall. But according to Obama there is no evidence that employers are cutting back employee's hours. Liberals eat up his lies so they believe him. The old "contraty to what you actually see the moon is really blue syndrome."

#2 is what is called the hockey stick effect. Just think about a hockey stick and you'll understand hopefully.

Fine analysis.

The Frog

Old Poolman profile image

Old Poolman 3 years ago from Rural Arizona Author

Thanks Jim, and I love the part about the hockey stick effect.

mslizzee profile image

mslizzee 3 years ago from Buncombe County, NC

Great Hub!

I especially like the fact that the IRS will be privy to everyone's personal business. Will IRS inspectors be doing physical exams, mammograms and Pabst tests? Gee. Maybe they will have the TSA folks help with that. They probably have more experience with groping and probing. :).

innerspin profile image

innerspin 3 years ago from uk

It's hard to get a handle on Obamacare from the UK. It seems a good enough idea to many of us that poorer people will have access to healthcare. Looks like there's an awful lot more to it than that.

Old Poolman profile image

Old Poolman 3 years ago from Rural Arizona Author

innerspin - To truly understand Obamacare, one would have to go back to how it was born. This healthcare monster bill covers thousands of pages of text. Our elected representative had only hours to decide how they would vote, and no time to even read the bill.

One of our more senile representatives announced they would have to "vote on the bill so they could find out what was in it." So without even knowing what it was, they made it the law of the land.

Believe me on this one, anyone in this country needing life saving treatment gets it for free at any hospital emergency room. It is law that nobody can be refused treatment.

If have heard stories of thousands dying because they had no medical care you are being lied to. But that is OK because many in our own country will tell you the same thing, without supporting facts of course.

breakfastpop profile image

breakfastpop 3 years ago

There is another solution to this dilemma. Can anyone say Costa Rica?

Old Poolman profile image

Old Poolman 3 years ago from Rural Arizona Author

Patti - Interesting that you would mention Costa Rica. I actually have Costa Rica written in my play book as Plan B if things get any worse in this country. I don't really care to spend my last few years living in a FEMA camp.

ssingam profile image

ssingam 3 years ago

Any company that first begins operations has hiccups. This hub article resembles similar sentiments at the onset of social security in the 1930s. I would suggest to 'Obamacare' haters to simply travel to any first world country with universal healthcare(most countries in europe, japan, etc.) and note the lack of cash registers and credit card swipe machines at the hospital.

Also there is a popular show called Breaking Bad. The character could not afford life saving chemo treatment and resorted to manufacturing crystal meth to pay for his treatment. But that is a TV show.

In 2009 , my wife and I decided to have a child. The burden of healthcare on employers proved too much for the company I worked for and they dropped health coverage less close its doors. I made enough money and decided to purchase healthcare on our own. We decided to apply with Blueshield. It was the same company my wife had previously and they had her medical history on file. We were denied coverage because of a pre-existing condition. A condition they diagnosed years before and operated on. We had to decide between coming up with $30,000 or go to Canada and pay $8000. Many a crying night after that realization, that we couldn't have a child because it wasn't profitable for the corporation. I had to quit my job and find one with health coverage.

Tell me again as pro business conservatives, why is it good to put the burden of healthcare costs on private companies?

Btw we have a wonderful 2 year old and currently expecting another.

Old Poolman profile image

Old Poolman 3 years ago from Rural Arizona Author

ssingam - Perhaps it is too early and I haven't had my coffee quota yet, but I'm having trouble with your comment.

The hub was about the loopholes available in the Obamacare plan such as couples getting divorced to save money on their insurance costs. Thousands of employees took a financial hit when they were reduced to part time work.

The facts on the true cost of Obamacare are now becoming real and it is not cheap or free insurance.

Thanks for stopping by and congratulations on the baby.

Mel Carriere profile image

Mel Carriere 2 years ago from San Diego California

The health care system was broken, but Obamacare certainly did not fix it. It will result in higher premiums for the middle class and for the working poor as well. I am sure they will spend decades patching up that ugly monstrosity to try to mold it into something that actually benefits working people with no health coverage. Great hub!

Old Poolman profile image

Old Poolman 2 years ago from Rural Arizona Author

Thanks Mel. My heart goes out to all of those who lost their coverage, and were cut to under 30 hours per week at their jobs. That must be devastating to a struggling couple who were just getting by.

Too much of this bill has little or nothing to do with healthcare in my opinion.

peachpurple profile image

peachpurple 2 years ago from Home Sweet Home

i heard a lot of complaint about the obamacare issues, no wonder

big daddy oreo 20 months ago

Old poolman,

I still have health insurance through my job but it is not much good. But I guess if I get sick it will get me in the door. It was never any good before Obamacare. Michael Moore once said there is one place in America everyone has healthcare. In Prison. People on welfare also if I am not mistaken.

Old Poolman profile image

Old Poolman 20 months ago from Rural Arizona Author

Big Daddy, you are correct. Prisoners get free health care but I would not want to trade places with them.

Buy even with Obamacare anyone with serious health issues can show up at most any ER and get free life saving treatment. This is still America and we just don't let anyone die if we can help it.

big daddy oreo 20 months ago

Old poolman,

Good news! It is possible. The president of the naacp is a white lady disguised as a black lady! I don't know the details but that is good news for white America in my eyes.

Old Poolman profile image

Old Poolman 20 months ago from Rural Arizona Author

You might be on to something.

big daddy oreo 20 months ago

Old Poolman,

you are a wise man. I wish more white people were open minded like you.

From what I hear she was a professional make up artist. She used make up to make herself appear black. She unethically used affirmative action to get through college and used her black skin to make a career for the naacp. They said she lied about her race. Unless they asked her what color she was born I do not know how she was lying.

So the next time their is a white person getting hung out to dry by the media like a Donald Sterling or a Hank Williams Jr they have the right to change their skin color if they want to. The whole world should know it now.

I hear she actually lied and said she was the victim of hate crimes. People hung nooses in her yard she claimed. When you are a white man you are an easy target in this country. But maybe this was meant to be a blessing for white men. They now have options.

Old Poolman profile image

Old Poolman 20 months ago from Rural Arizona Author

Big Daddy - It is reported that on an application for a position with some Police Department she said she was American Indian and African American on the application.

It was stated on the news today that she is in love with the Black Culture since she was about 5 years old. I happen to love the Mexican Culture but have never claimed I was Hispanic.

I think she was trying to use race to move her ahead in her choice of careers. She knew she would never, ever, get hired by the NAACP as a white person, so she lied. But then many have lied about their ethnic backgrounds to gain advantage for schools and employment. Heck, a Congress woman lied about being part American Indian to gain advantage, but she also got caught.

I guess the rule now is we can claim to be anyone or anything we want to as long as we don't get caught.

big daddy oreo 20 months ago

I noticed more and more white people dating outside their race. Do you think some of them are having mixed babies so they can receive all the benefits of affirmative action?

Old Poolman profile image

Old Poolman 20 months ago from Rural Arizona Author

Big Daddy - I would guess there are many different reasons but this could be one of them.

big daddy 20 months ago

Old poolman,

I just read your comment on a hubpage where thug is now a racial slur. Let me let you in on a secret. You do not have to watch what you say nearly as much if you are black. I am literally stunned that more white males have not changed their skin color to black. Stunned!

Whites vs Blacks fued

My game plan if I was in charge.

white bosses goes undercover as a black boss to get more productivity out of black employees.

white teachers ditto.

white lawyers go undercover as black to protect whites from discrimination lawsuits.

The media is biased. They ignore it when a white is discrimination against. But they expose it when a black person is. Like south carolina shootings. Trust me black people are way more protected in america. Black skin is something I would want my son to have if I had one. I would never put a white baby in this world based on the information I have on race.

Old Poolman profile image

Old Poolman 20 months ago from Rural Arizona Author

That sounds like a worthwhile mission Big Daddy. Good luck.

big daddy 20 months ago

Thank you old poolman. I invite you to tell your friends or family or anyone you feel comfortable talking race with about my idea. Maybe you have a son that wants to get into management. You could discuss it with him. Maybe you have a friend that wants to get into law enforcement or teaching.

I have a friend who wants to be a cop. I told him about it. He said he would be willing to go undercover as a black man if they asked him.

it is okay to change your skin color but you are not supposed to lie on your applications though.

susan 16 months ago

Can you explain what you mean by "The federal dollars they receive will be treated as taxable income when they file their taxes"?

Are you talking about reconciling the advanced premium tax credits if your income was not reported correctly when applying for insurance?

Old Poolman profile image

Old Poolman 16 months ago from Rural Arizona Author

Susan, the way it was explained to me was that the allowance a person receives to help them pay for Obamacare will be treated as taxable income when tax time rolls around. That is all I know about it because I don't get any help paying for my insurance.

norlawrence profile image

norlawrence 4 months ago from California

Thanks for a great article. I learned a lot I did not know from it.

Old Poolman profile image

Old Poolman 4 months ago from Rural Arizona Author

Thanks but your dog breed hubs are way more relaxing to read.

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