Co-workers discussing getting a legal divorce just to qualify for Peach Care

[Marionnette]

Are none of you actually divorced?

While a non working ex-spouse might qualify for assistance, the working ex-spouse would be required to cover the children on his/her plan.

The person carrying the medical benefits would be required to carry them through the separation.

I think that might vary from state to state. PA can require one parent to cover the children's health insurance but the state cannot force an ex to cover the former spouse. It's how the state skirts placing the kids on the CHiP program.

Part of my brother's divorce decree includes this stipulation. It is independent of the child support agreement and the custody agreement. However, the agreement also stipulates that his ex has responsibility for half of all medical copays and deductibles. So, she doesn't get out of also paying for the kids' healthcare completely.

 

[jgreco]

So they are thinking of getting a divorce just in case something goes wrong and they have to pay $50-$65 out of pocket for a doc appt?

I'm willing to bet that these people have cable or a cellphone they could cut back on first. Besides, let's say a divorce costs $500, put that in the bank for a "medical fund" instead and you've got 10 visits covered right there,

 

[indimom]

So they are thinking of getting a divorce just in case something goes wrong and they have to pay $50-$65 out of pocket for a doc appt?

I'm willing to bet that these people have cable or a cellphone they could cut back on first. Besides, let's say a divorce costs $500, put that in the bank for a "medical fund" instead and you've got 10 visits covered right there,

That's just thinking logically. We can't have that!!!

I've learned over the years that personal budgets have a lot more stretch in them than we care to believe. What it really comes down to is a WANT to keep certain parts of our budget just the way they are. No one enjoys seeing their "vacation" or "fun money" budgets shrink in order for their medical budget to expand...

 

[RitaE]

It sounds to me like one of those things that people grumble and shoot their mouths off about but almost none of them will actually do it in practice, and like has been mentioned they really don't understand the details that make it unworkable anyway.

I have to wonder though .... with regular doctor office visits heading into $50 range at what point will people start offering their Doctors just a cash payment and skip the insurance billing altogether? I've seen some health clinics around here that will charge a $65 cash payment up front fee for a minor problem office visit like a strep test and prescription. It's getting awfully close to that.

 

[raysnkaysmom]

I know of a number of elderly couples who have married for the financial benefits, either from some ss inheritance or some tax benefit or etc. I don't know the specifics, but that's been the reason given.

If it's household and people are living in the same one but claiming they don't, I agree that'd be fraudulent.

I was reading it as strictly married vs. unmarried and people divorcing so as to take advantage of the unmarried status benefits. If that's the case I don't think it's fraudulent or wrong.

My mom and stepdad had been together for 20 yrs, and chose not to marry... then,my stepdad got sick and they found out my mom could lose their home they built to the state for medical bills, to his family, etc... So, they married a few months before he passed away so my mom wouldn't be without a home.

And..in regards to divorcing for the reason of affording financial care for their kids... I hate it comes to that, but if it is what cares for my kids because the state or government doesn't make it affordable...then so be it.

 

[tlh0726]

Under Medicaid rules, obtaining a divorce strictly for the purpose of qualifying for benefits is fraud. We checked into it for a client who was a quadraplegic. You had to definitely have separate residences. I would think that requirement alone would negate the benefit of qualifying for welfare (which is what Medicaid is). It is meant as a safety net to catch those who are truly in need, not those who are going to have to struggle to make a co-pay increase.

My premiums are going up, my co-pays are going up, my co-insurance is going up as well. My max out of pocket goes from $2,500 to $3,000 next year. Somehow I will manage to pay these things.

One other issue to keep in mind is that if you divorce, you divide assets. Assets matter in medicaid calculations. So if you have a husband with a large retirement account, it will be divided by marital law in the state as part of the divorce settlement. So shifting all assets to one spouse and then divorcing will not work.

I know in NH retirement accounts such as IRAs are considered assets available to pay for medical care. My brother has a severely handicapped daughter and they had to cash out his wife's IRA to "spend down".

The divorce strategy might work, but is it worth the risk of getting caught? It's like married couples who divorced on December 30 and re-married on January 2 to avoid filing joint tax returns. That was found to be fraudulent.,

The bolded above.
Unless you have a major medial issue, the cost to have a 2nd home for the "divorced" spouse is going to be way more than the increase of copays and deductibles.

 

[luvmy3]

My mom and stepdad had been together for 20 yrs, and chose not to marry... then,my stepdad got sick and they found out my mom could lose their home they built to the state for medical bills, to his family, etc... So, they married a few months before he passed away so my mom wouldn't be without a home.

And..in regards to divorcing for the reason of affording financial care for their kids... I hate it comes to that, but if it is what cares for my kids because the state or government doesn't make it affordable...then so be it.

It doesn't come to that, people choose that, big difference. It is all about choice, people choose not to sacrifice things in order to save for college costs, people choose not to work extra jobs to save for college, people choose to not take out loans, and people choose to divorce so that the state can foot their bill. They aren't forced into it they are choosing it.
Same with the situation in the OP. As long as its not breaking the law, I don't care what people do. I wouldn't do it though.

 

[angwill]

If you have to claim the income of everyone in the household does that mean that if a person is taking care of a sickly elderly relative that has a good pension, that they get none of, they have to claim that pension. Another senerio would be if they live with a roomate or two or three to make ends meet and those roomates make a lot more money they need to get their private financial information and claim their income?

 

[Bete]

and we would have to know a lot more of the out of pocket expenses to know if it's worth being divorced or not.

I think the greatest risk is the fact the parents no longer have legal obligations to be together. I think it gets to be too easy to cheat on your partner and so forth if divorced. One thing leads to another. I think this is especially true for the one who earns more. All of a sudden the grass on the other side is greener. The whole world knows you as legally divorced and available. All of a sudden you find yourself not comprising any more as a couple, too. I think as married you learn it's give and take; when you are divorced it can become more of my way or the highway. If you are the rare couple who can manage through all these emotional situations then more power to you. If I wasn't the bigger wage earner I would be worried all the time. A taste of independence being divorced can lead one to go a stray. I know some will say the marriage wasn't worth it then, but being legally married does give some glue to the relationship. If someone is underhanded this would be a great way to get a more amiable divorced. You are playing with fire, here. There's a religious aspect to be considered, here, too.

Also, the label of being divorced may cause emotional situations for the children. Even if you try to explain that it's all okay children will have their own ideas about it. In this case, you are playing with dynamite. As a married coupled you represent a united front. Believe me some teenagers figure out real fast how to manipulate this circumstance. Many children feel entitled and the me, me and me syndrome can be taxing on the parents when divorced.

If there is great medical need as with a permanent disability then I can probably see the need for doing this more. Believe me the government will tighten up on all the lose regulations and the loopholes will be gone in the future. If it gets abused there will be changes. It may take 5 years or so to work through it all, but it will happen if there are too many divorced for this reason. With regards to seniors getting a divorce this was true for a while, but new laws caught up with a lot of this practice.

Finally, I certainly would try to cut back expenses radically before thinking about divorce for loopholes available right now. Take a look at the TV series Extreme Cheapstakes on the Learning Channel. One person on it professes becoming a millionaire through her practices. She started all of this because she was a single mom going through rough times. I can't say I would follow all of what happens here, but I have come away with some ideas that are useful from the show.

I think in the long run if you learn to live within a budget and learn to enjoy the freer things in life you will be better off in the long run. There are some threads, here on this board that explain how to cut back on your expenses. Finding loopholes is not a good answer.

Perhaps each of you should go to a different lawyer alone and discuss it and then go together. Lawyers don't make money by you staying married; so, believe me you will hear all the pros of getting a divorce. I have heard of some doing their own divorce, but I sure wouldn't do this myself.

 

[ccgirl]

Next year our co-pays are going up to $50 for a dr. visit and $65 for a specialist visit. Some of my co-workers at my job were seriously discussing getting a legal separation/divorce (still staying with their spouse) just to be able to get onto GA Peachcare insurance for their children. I can't say that I don't blame them really. One of them has been married almost 17 years, but fears they won't be able to afford the co-pays. It is a shame that many married people get screwed like this.

I don't see it as married people getting screwed at all. They are not getting screwed because they are married. And, just because they are divorced does not mean they will qualify especially if someone is paying child support. I used to work for the projects near me. There were quite a few people who never got married and said they did not know who their baby daddy is (even though they lived with them) so they could mooch off the system though. We reported them but nothing usually happened. You may not *blame* them for this but I do. People like that are what leaches the system. They are just adding to the problem rather than solving it. Those copays are not all that exhorbitant. Maybe they will really just go to the dr's when they are truly ill.

I thought all Health Care would be completely Free next year.
No?

Nothing is free. The people that get is may not have to pay but those that pay taxes get to pay for it. That has been my point all along with the "healthcare for everyone" thing. Who is going to pay for it???

 

[ccgirl]

It doesn't come to that, people choose that, big difference. It is all about choice, people choose not to sacrifice things in order to save for college costs, people choose not to work extra jobs to save for college, people choose to not take out loans, and people choose to divorce so that the state can foot their bill. They aren't forced into it they are choosing it. Same with the situation in the OP. As long as its not breaking the law, I don't care what people do. I wouldn't do it though.

Oh, stop. You are way too logical.

To me, it is fraud. To me it is one of the reasons my taxes keep going up and the people depending on the system keep going up. They take the easy way out.

To me, being married is more than a piece of paper.

I realize some qualify for assistance even if they do work, and sometimes multiple jobs. Some can't work due to medical reasons. Some, like the elderly, can't work and planned poorly for their retirement. IMHO, those are the ones the assistance is there for.

I was always taught you work, and work hard, for what you need and you are thankful for what you have. I am planning for my retirement so as not to be a burden on my children.

 

[allison443]

This is just more people expecting the government/taxpayers to pay for their kids' needs...I wonder if any of the people considering doing this complain about "welfare mothers" and others who "live off the government..."

edited to add, I think there are catastrophic cases like someone mentioned earlier-not referring to them.

 

[rigs32]

I don't think people realize that many programs also have a look back period.

 

[AndreaDM]

My coworkers parents who are in their late 60's, both with a lot of health issues were advised by their attorney to get a legal divorce so she would qualify for more benefits since she's in a nursing home now. They are also both retired pastors and won't do it, but I can see how it would make sense for some people.

 

[mrodgers]

Production guys here at work are on a 12 hour schedule, 36 hours first week, 48 hours (with OT pay) the 2nd week of the pay period.

One guy takes 8 hours vacation or sick time on his 48 hour every time to keep his wages low enough to take CHiP for his kids even though he has medical benefits available and pays for the "you plus one" coverage. The income level is astronomical for getting CHiP. With a family of 4, the top income for free coverage is $46,000.

Funny thing is his post on Facebook. He ranted and made the comment that if the government would quit making it so easy to get assistance, then maybe a lot of the lazy ones would have to get up and get a job.

 

[Leajess99]

Are none of you actually divorced?

While a non working ex-spouse might qualify for assistance, the working ex-spouse would be required to cover the children on his/her plan.

The person carrying the medical benefits would be required to carry them through the separation.

Yep. And the state would require child support be ordered and a portion go back to medicaid.

Also, being divorced and continuing to live together is fraud and can carry jail time or repayment of benefits and denial of future benefits.

 

[pls5286]

My kids are on Peachcare. I pay $44 a month for their insurance. While the concept of Peachcare is good, there are some drawbacks to it. The primary doctor and dentist the kids see accept the Americare version, but not the Wellcare. I have the kids on Americare.

There are no orthopedics in my area that accept Americare. My son has a bad back injury. We are traveling approximately 100 miles to see a pediatric orthopedic spine specialist. The closest ones to us are in Augusta or Atlanta that will take his insurance. We spend more that the OP $50 in gas going back and forth to the dr even though we have no co-pay.

We are now starting testing to see if my youngest will have the same condition as her brother. Guess what, more trips to Augusta!

You need to be very careful when you choose what insurance is best. It may look better on the outside, but on the inside, it is not.

I am disabled however, and do not have the option of putting my kids on my insurance.

 

[ccgirl]

My coworkers parents who are in their late 60's, both with a lot of health issues were advised by their attorney to get a legal divorce so she would qualify for more benefits since she's in a nursing home now. They are also both retired pastors and won't do it, but I can see how it would make sense for some people.

Attorney's don't always give out the best advice. They are there to *help* their clients and lots of ways around things. Just because an attorney told you to do something doesn't mean you should or that it makes sense. Sounds like your coworkers parents used their values/morals. Good for them.

 

[Tinkermommy]

My coworkers parents who are in their late 60's, both with a lot of health issues were advised by their attorney to get a legal divorce so she would qualify for more benefits since she's in a nursing home now. They are also both retired pastors and won't do it, but I can see how it would make sense for some people.

I applaud these folks. I got married "in sickness and in health" but maybe it should be "unless I can get cheaper benefits."

I do know my children's pediatrician stopped taking PeachCare. I think as another PP said, the grass may look greener but there are things that may offset any perceived savings.

I would also imagine if they have children you cannot get a cheap $500 divorce. I've always heard that was for people with no kids and no assets but not having been down that road, I really don't know.

I know for me the "emotional" and "ethical" cost would be too high.

 

[luvsJack]

Yep. And the state would require child support be ordered and a portion go back to medicaid.

Also, being divorced and continuing to live together is fraud and can carry jail time or repayment of benefits and denial of future benefits.

Your second statement is true and I would never do it BUT, the first one is dependent upon the state you live in.

Here, one parent carrying insurance on the children is only a stipulation if it is put in the divorse papers. Its not automatic, the custodial parent has to ask for it (and the judge can rule in favor of the non-custodial parent on this). And even then, if that parent becomes unable to carry insurance for some reason, then there can be a change in the papers.

Same thing with child support. The custodial parent can refuse it unless he/she gets on welfare or food stamps. The CHiP program would not be in the same category.

And if child support is given, none of it goes back to welfare, food stamps or medicaid.

Also, for the cheap divorces, you can get them as long as everything is agreed upon by both parties. If there is any disagreement then it will cost more.