The calculation of child support is a thorny issue. One of the elements of the calculation of child support is which parent pays for the child (or children’s insurance). Typically, the parent who pays for the insurance coverage gets a credit – either an addition or deduction, depending on if they are the party owed support. If one party remarries or gets into a relationship where a third party pays for the insurance coverage for the child, how is that credit distributed? The pertinent part of the Pennsylvania Rules of Civil Procedure §1910.16-6(b) provides for the payment of health insurance coverage, in relevant part, deals with this issue as far as calculation as follows:
(1) A party’s payment of a premium to provide health insurance coverage on behalf of the other party and/or the children shall be allocated between the parties in proportion to their net incomes, including the portion of the premium attributable to the party who is paying it, as long as a statutory duty of support is owed to the party who is paying the premium. If there is no statutory duty of support owed to the party who is paying the premium, the portion attributable to that person must be deducted from the premium as set forth in subdivision (2) below. Premiums paid by a party to whom no duty of support is owed to cover himself or herself only and that are not necessary to cover the other party or a child as part of a support order shall not be apportioned between the parties. If health insurance coverage for a child who is the subject of the support proceeding is being provided and paid for by a third party resident of either party’s household, the cost shall be allocated between the parties in proportion to their net incomes. If the obligor is paying the premium, then the obligee’s share is deducted from the obligor’s basic support obligation. If the obligee is paying the premium, then the obligor’s share is added to his or her basic support obligation. Employer-paid premiums are not subject to allocation.
(2) When the health insurance covers a party to whom no statutory duty of support is owed, even if that person is paying the premium as set forth in subdivision (1) above, or other persons who are not parties to the support action or children who are not the subjects of the support action, the portion of the premium attributable to them must be excluded from allocation. In the event that evidence as to this portion is not submitted by either party, it shall be calculated as follows. First, determine the cost per person by dividing the total cost of the premium by the number of persons covered under the policy. Second, multiply the cost per person by the number of persons who are not owed a statutory duty of support, or are not parties to, or the subject of the support action. The resulting amount is excluded from allocation. Pa.R.C.P. 1910.16-6(b).
Maher v Maher, 575 Pa. 181, 835 A.2d 1281 (Pa. 2003) holds that when an insurance policy is purchased covering multiple members of the household, the spouse does not get a credit for the purposes of child support payments, for that portion of the insurance policy that does not apply to the children. The portion of the insurance policy that applies to the child results in the credit – but not that portion which includes the ex-spouse. If it is difficult or poses an issue determining the severability of the insurance policy, then Pa.R.C.P. 1910.16-6(b)(2) applies as noted above. The simple calculation requiring dividing the cost of the policy by the number of individuals covered and the resulting amount being the total credit, is used. More specifically, the child support credit is reduced or augmented by the amount of the monthly premium cost attributable to the child.