My son is a new college graduate and has a job!! He is working for a small private company and the health insurance is poor or at least does not cover chiropractic care which he has to use a lot and has a very high co-pay. He would still need to pay $50/mo for 1/2 of it. He has some pre-existing health issues and cannot get own insurance.
He is still covered as a dependent on our insurance (and our tax return). As of the first of the year probably have to make some changes. He can get his own separate insurance through ours and he pays the premiums and it will still be the same better coverage we have now. This would cost him$200 per month. He can get this because we have been on this insurance for a few years.
I understand he would need to do this as if he stays on ours he would have to call it $7-8000 of income and pay tax on it. This is because of some new laws.
Anyone have had experience with these issues or know more about it than I apparently do?
I'll will pay our CPA for this advice but like to know more about this so I am not using just one opinion.
Thanks for any help.
Your son is in a tough situation, obviously. Also, your ability to claim him as an exemption/dependent is likely going to go away unless you can show that you provide at least half of his support along with some other factors since it sounds like he's over 22 and no longer a student.
An option to consider, if he can get it done with the pre-existing conditions, a high-deductible health plan (HDHP) in combination with an Health Savings Account (HSA). For some people that have very high medical bills on an annual basis, this is a very good option and has some real tax benefits.
There's also simple "catastrophic" health insurance plans that might be considered. Very high deductibles and only cover major events, but the premiums are very low.
In addition to speaking with your CPA, I would suggest that you also consult with some independent insurance agents. They may be able to put some numbers to the situation and give you some better options - as long as you consult with your CPA before signing.
I do not know what your son's income level is, but there's also the "Iowa Cares" program for which he may qualify. It's at least worth looking into.
I don't think it's something he'll get away from. Even the biggest companies are underwriting new employees now and evaluate pre-existing conditions.
Sorry I couldn't be more help. That's a tough one.
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