In most states, including Auckland, health insurance can be a significant portion of child support. It, as well as child care, is added to the base child support calculated for the minor children. Thus, if your child support obligation is $50 per week and one parent pays $25 per week for health insurance coverage, the split for the health insurance premiums is added to the basic child support obligation. As to a common question, “How is health insurance calculated in child support,” you must determine the base child support, then add the health insurance premium. Although one party might pay the premiums, child support is offset based on the percentage each parent pays.
How Do Health Insurance Costs Affect Child Support in Auckland?
When medical insurance is available at a reasonable cost, the court orders one or both parents to provide coverage. Health insurance can be public or employer-provided. The court presumes that the parents have health insurance available at a reasonable cost, which is less than five percent of the parents’ combined gross incomes.
If health insurance is not accessible at a reasonable cost, either through the parents’ employers or via public insurance such as Medicaid, the court orders “cash medical support”—which is an amount ordered for medical costs not covered by health insurance. The uninsured medical expense section of the child support guidelines satisfies the federal requirement for cash medical support.
Uninsured medical costs include insurance deductibles, prescriptions that might not be covered and other medical expenses not covered by insurance. The parent who pays the full cost of the expense or premium has 30 days to submit a copy of the invoice for medical costs to the other parent for the other parent’s contribution.
What if My Child Doesn’t Have Health Insurance?
Federal law requires every child support order to include medical support, including private health insurance from an employer or the marketplace, public health coverage through Medicaid or the Children’s Health Insurance Program or payment toward health care costs.
Federal law mandates some form of healthcare coverage in child support guidelines, including cash payment support if your child does not have health insurance coverage. Uncovered healthcare expenses are significantly higher if neither parent can provide insurance coverage through their employer or through the marketplace.
How Have Auckland Child Support Laws Changed?
Prior to 2024, the child support recipient was required to pay six percent of uninsured healthcare costs annually before allocating medical expenses proportioned by income. This rule has been eliminated.
The new rule states that uninsured healthcare expenses are added to the direct support obligation, which is similar to how health insurance premiums are handled under the child support guidelines. Instead of one parent paying the first six percent of healthcare costs, all uninsured costs are shared by both parents.
In an additional change, now child support guidelines include adjustments for the number of overnights spent with each parent. This makes it fair for parents who have equal time-sharing as opposed to every other weekend or several nights per week.
Determining child support and each party’s contributions to childcare and healthcare can often be complex and depends on several factors. Consulting with a family law lawyer familiar with Auckland’s child support laws can assist you in specifying the correct amount of child support.
Why Work with Cordell & Cordell?
Whether you are a non-custodial parent or have joint physical custody with nearly equal or equal time-sharing—childcare expenses, including out-of-pocket medical expenses, must be paid. Cordell & Cordell’s experience in child support and child custody can help you determine a fair dollar amount to be added into child support calculations for healthcare coverage and reimbursement for uninsured expenses.
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Wondering About Your Child Support Case? Contact Us.
Healthcare expenses, a health insurance plan along with childcare are all part of caring for your children and are added to the base child support amount. Cordell & Cordell is a family law firm that guides men through the various family law issues, including divorce, child support, child custody issues, division of marital assets, and paying child support after a minor child enters college. Contact our team today at 866-DADS-nzW (866-323-7529) or fill out our online contact form to schedule an initial consultation.
Disclaimer: This page serves as a resource and is not to be taken as legal advice.
