Health Insurance Options for Unmarried Couples

If you are in a committed relationship but not legally married, health insurance works differently for you than it does for married couples. You cannot share a marketplace plan. You cannot file a joint tax return. And the strategies that work for married couples to save on premiums and maximize subsidies do not apply to you in the same way.

But unmarried couples also have unique advantages. Filing separate tax returns means each partner's subsidy eligibility is calculated independently, which can result in more total financial assistance than a married couple with the same combined income would receive. Understanding how the system works lets you make strategic decisions that minimize your combined healthcare costs.

This guide covers every major consideration for unmarried couples navigating health insurance, from ACA marketplace rules to domestic partner employer benefits, subsidy optimization strategies, common-law marriage implications, and when getting married might actually make financial sense for your coverage.

Why Unmarried Couples Cannot Share a Marketplace Plan

The ACA marketplace is built around the concept of a tax household. When you apply for coverage on HealthCare.gov or your state's exchange, the system determines your eligibility for premium tax credits based on who is in your tax household and your combined household income. For married couples who file jointly, both spouses and their dependents form one tax household and can enroll in a single plan together.

Unmarried couples, regardless of how long they have been together or whether they share a home and finances, are treated as separate tax households. Each partner files their own individual tax return. Because of this, each partner must submit a separate marketplace application and enroll in their own individual plan. There is no option to add an unmarried partner to your marketplace application the way you would add a spouse.

This rule applies even if you share children. If you have a child together, the parent who claims the child as a dependent on their tax return includes that child on their marketplace application. The other parent applies as an individual without dependents. If you each claim different children, each parent includes only the children they claim on their respective applications.

Domestic Partner Benefits Through Employers

While the ACA marketplace does not recognize unmarried partners, many employers do. A growing number of companies offer domestic partner health insurance benefits that allow employees to add an unmarried partner to their employer-sponsored health plan, similar to how a married employee would add a spouse.

How Domestic Partner Employer Coverage Works

Employers that offer domestic partner benefits typically require some form of documentation. This may include a signed affidavit, a domestic partnership registration with your city or state, proof of shared residence, or evidence of financial interdependence such as a joint bank account or shared lease. The specific requirements vary by employer.

Once enrolled, your domestic partner has the same access to the health plan as a legal spouse would. They can use the same provider network, the same prescription drug formulary, and the same in-network facilities. They are subject to the same deductibles and out-of-pocket maximums. From a coverage perspective, there is no difference between a spouse and a domestic partner on the plan.

The Tax Catch: Imputed Income

There is a significant tax difference between covering a spouse and covering a domestic partner on an employer plan. When an employer pays part of the premium for a legal spouse, that contribution is not taxable income to the employee. However, when an employer pays part of the premium for a domestic partner who is not a legal spouse or tax dependent, the employer's contribution is treated as imputed income.

This means the fair market value of the employer's share of your partner's coverage is added to your taxable wages. You pay federal income tax, state income tax where applicable, and FICA taxes on this imputed income. Depending on the cost of the plan and your tax bracket, this can add $1,000 to $3,000 or more in annual taxes. Before enrolling a domestic partner in your employer plan, calculate the total cost including imputed income taxes and compare it to what your partner would pay for their own individual marketplace plan with potential subsidies.

Companies That Commonly Offer Domestic Partner Benefits

Many large employers and Fortune 500 companies offer domestic partner health benefits. Technology companies, financial services firms, consulting firms, universities, and most state and local government employers in progressive states tend to offer these benefits. The Human Rights Campaign's Corporate Equality Index tracks which major employers provide domestic partner coverage. If you are evaluating job offers and your partner's coverage is a concern, domestic partner benefits availability should be part of your comparison.

Separate Marketplace Applications: A Strategic Advantage

Being required to apply separately on the marketplace is not purely a disadvantage. In many cases, it creates an opportunity to receive more total premium tax credit assistance than you would as a married couple.

How Separate Applications Affect Subsidies

Premium tax credits on the marketplace are based on your household income as a percentage of the federal poverty level. The poverty level thresholds are different for different household sizes. A single individual has a lower poverty level threshold than a married couple. Because unmarried partners each file as a single-person household, each person's income is compared against the individual poverty level rather than the higher married-couple threshold.

Consider this example. Two unmarried partners each earn $35,000 per year. As individual applicants, each person's $35,000 income is approximately 227 percent of the federal poverty level for a household of one. At this income level, each person qualifies for a meaningful premium tax credit. If this same couple were married and filed jointly, their combined $70,000 income would be approximately 227 percent of the poverty level for a household of two, which happens to be a similar percentage. However, in many income scenarios, especially when incomes are unequal, the math works out more favorably for unmarried couples.

The Income Disparity Advantage

The subsidy advantage for unmarried couples is most pronounced when there is a significant income gap between partners. Suppose one partner earns $75,000 and the other earns $20,000. If they were married and filing jointly, their combined $95,000 household income would put them at roughly 308 percent of the poverty level for two, resulting in moderate subsidy eligibility for a joint plan. As unmarried individuals, the partner earning $20,000 is at roughly 130 percent of the poverty level and qualifies for a large premium tax credit and potentially cost-sharing reductions on a Silver plan. The partner earning $75,000 may qualify for a smaller subsidy or may choose to get coverage through their employer.

This income-based separation means the lower-earning partner can often secure a high-quality Silver plan with cost-sharing reductions for a very low monthly premium. Understanding how much health insurance costs for individuals at different income levels helps you plan your combined budget.

Filing Taxes Separately and Subsidy Calculations

Your marketplace premium tax credit is reconciled on your federal tax return. When you apply for coverage, you estimate your annual income. The marketplace uses that estimate to calculate your monthly subsidy amount. At tax time, the IRS compares your actual income to your estimate and adjusts accordingly. If you received too much in subsidies, you may owe money back. If you received too little, you get a refund.

For unmarried couples, this process is completely independent for each partner. Each person reports only their own income and dependents on their individual tax return. Your partner's income has no bearing on your subsidy calculation and is not reported anywhere on your marketplace application or tax return. This is fundamentally different from married couples, who must report combined household income regardless of whether they file jointly or use the married-filing-separately status.

It is critical to report your income accurately. The marketplace will verify your income information, and significant discrepancies can result in a large tax bill when you reconcile. If your income changes during the year, update your marketplace application promptly so your subsidy amount adjusts in real time rather than requiring a large reconciliation at tax time.

Common-Law Marriage and Health Insurance

Common-law marriage adds an important wrinkle for some unmarried couples. In states that recognize common-law marriage, couples who meet certain criteria are considered legally married even without a marriage license or ceremony. If you are in a common-law marriage recognized by your state, you are treated as married for all federal purposes, including health insurance marketplace enrollment and tax filing.

States That Recognize Common-Law Marriage

As of 2026, the following states recognize common-law marriage for couples who meet the requirements:

• Colorado
• Iowa
• Kansas
• Montana
• Oklahoma
• Rhode Island
• South Carolina
• Texas
• Utah
• District of Columbia

Requirements typically include mutual agreement to be married, cohabitation, and holding yourselves out to the community as a married couple. Simply living together for a long time does not automatically create a common-law marriage. If you believe you may be in a common-law marriage, consult a family law attorney in your state, as the implications extend well beyond health insurance to property rights, inheritance, and tax obligations.

Important: if you have a valid common-law marriage and your state recognizes it, you are required to file taxes as a married couple. Filing as single when you have a recognized common-law marriage is technically tax fraud. This also means you must apply for marketplace coverage as a married couple on a single application, and your combined income will be used for subsidy calculations.

States With Domestic Partner Protections

Even if your state does not recognize common-law marriage, it may offer domestic partnership registration or civil union status that provides certain legal protections and can facilitate access to partner benefits.

States with robust domestic partnership or civil union laws include California, Oregon, Washington, Nevada, New Jersey, Hawaii, Illinois, Colorado, Maine, and the District of Columbia. In these states, registered domestic partners or civil union partners may have access to state employee health benefits and may find it easier to enroll in a private employer's domestic partner coverage because the state provides a formal registration process.

However, a state domestic partnership registration does not change your federal tax filing status. You still file federal taxes as a single individual. And on the ACA marketplace, which uses federal tax household rules, you still apply separately. State domestic partnership status primarily affects access to employer-sponsored coverage and certain state-level legal rights, not marketplace enrollment.

Strategies for Minimizing Combined Healthcare Costs

As an unmarried couple, you have the flexibility to optimize each partner's coverage independently. Here are the most effective strategies for reducing your total combined costs. Before implementing any of these, it helps to understand the fundamentals of how to choose health insurance for your individual situation.

Strategy 1: Use Employer Coverage for One Partner, Marketplace for the Other

If one partner has access to affordable employer-sponsored coverage, that partner should typically take the employer plan, especially if the employer contributes a significant portion of the premium. The other partner can then apply for marketplace coverage independently. Because the second partner's marketplace application does not include the first partner's income, their subsidy eligibility is based solely on their own earnings. This often results in a lower combined cost than if both partners were on a single employer family plan or both paying full price on the marketplace.

Strategy 2: Both Partners on the Marketplace With Separate Subsidy Calculations

If neither partner has employer coverage or if employer coverage is too expensive, both partners can apply for marketplace plans. Because each partner's income is evaluated independently against the individual federal poverty level, you may find that one or both of you qualifies for significant subsidies. The partner with lower income should pay close attention to cost-sharing reduction eligibility, which applies to Silver-tier plans for individuals earning between 100 and 250 percent of the poverty level. These reductions lower deductibles, copays, and out-of-pocket maximums, making a Silver plan function more like a Gold or Platinum plan at a Bronze price.

Strategy 3: Coordinate Plan Choices Around Your Health Needs

Since each partner picks their own plan, you can tailor coverage to individual needs without compromising. If one partner is healthy and rarely sees a doctor, they might choose a low-premium Bronze or high-deductible plan. If the other partner has a chronic condition, takes ongoing prescriptions, or expects medical procedures, they can select a richer Gold or Silver plan with lower out-of-pocket costs. A married couple on a shared plan cannot make this kind of individualized choice.

Strategy 4: Evaluate the Total Cost of Domestic Partner Employer Coverage

If one partner's employer offers domestic partner coverage, do not assume it is the best deal. Calculate the full cost by adding the employee's share of the premium for the partner tier, plus the estimated imputed income tax you will owe on the employer's contribution. Compare this total to what the partner would pay for a marketplace plan after subsidies. In many cases, especially if the partner has a moderate income, a subsidized marketplace plan is cheaper than the employer plan once imputed income taxes are factored in.

Strategy 5: Manage Income to Maximize Subsidies

Because each partner's subsidy is based on their individual income, you have more control over subsidy eligibility than married couples do. Contributions to traditional IRAs, HSAs, and other pre-tax accounts reduce your modified adjusted gross income, which is the figure used for subsidy calculations. If one partner is near an income threshold that would increase their subsidy or qualify them for cost-sharing reductions, maximizing pre-tax contributions could push their income below the threshold and save significant money on coverage.

When Marriage Makes Financial Sense for Health Insurance

While this is not a romantic consideration, marriage changes the health insurance landscape significantly. There are situations where getting married could reduce your combined healthcare costs, and situations where it would increase them.

Marriage May Help When

• One partner has excellent employer coverage with affordable family rates, and adding a spouse would be much cheaper than the other partner's current plan
• One partner has no income or very low income and does not qualify for Medicaid as an individual but would gain coverage as a spouse on the other partner's employer plan
• You want to eliminate the imputed income tax on domestic partner employer benefits by making the partnership a legal marriage
• One partner has significant health needs and sharing a family plan with a family deductible and out-of-pocket maximum would provide better financial protection

Marriage May Hurt When

• Both partners earn moderate incomes and each qualifies for marketplace subsidies as individuals. Combining incomes on a joint return could reduce or eliminate subsidies.
• One partner has very low income and qualifies for Medicaid as an individual. Adding the other partner's income to the household through marriage could push them above the Medicaid threshold.
• One partner qualifies for cost-sharing reductions as an individual. Combined married income might push the household above the 250 percent federal poverty level threshold for CSR eligibility.
• Each partner has different health needs and benefits from being on individually tailored plans at different metal tiers.

Before making any decisions, use the calculator on HealthCare.gov to model both scenarios: your current situation as two individual applicants and a hypothetical married scenario with combined income. Compare total annual costs including premiums after subsidies, expected out-of-pocket expenses, and any tax implications. The answer is different for every couple depending on incomes, health needs, available employer plans, and state of residence.

Handling Children as an Unmarried Couple

If you have children together or from previous relationships, health insurance decisions become more complex. The key rule is that children go on the marketplace application of the parent who claims them as tax dependents. Both parents do not claim the same child.

This creates a strategic choice. The parent who claims the children adds them to their marketplace application, which increases their household size. A larger household size means a higher federal poverty level threshold, which can increase subsidy eligibility. In many cases, the lower-earning parent should claim the children because it increases their household size while keeping the household income low, maximizing the premium tax credit and potentially qualifying for cost-sharing reductions or even Medicaid and CHIP for the children.

Work with a tax professional to determine the best arrangement. The decision about who claims the children affects not only health insurance subsidies but also the Earned Income Tax Credit, Child Tax Credit, and other tax benefits. Optimize the whole picture, not just the health insurance piece.

Practical Steps for Unmarried Couples Shopping for Coverage

Here is a step-by-step approach for unmarried couples looking to get the best value on health insurance.

1. Inventory your options. List every coverage source available to each partner: employer plans, marketplace plans, Medicaid eligibility, and any professional or alumni association plans.
2. Check for domestic partner benefits. Contact each employer's HR department to ask if domestic partner coverage is available and what documentation is required.
3. Estimate each partner's individual income. Use your modified adjusted gross income, which includes wages, self-employment income, investment income, and other sources, minus deductions like traditional IRA and HSA contributions.
4. Run the marketplace calculator separately for each partner. Go to HealthCare.gov and enter each person's individual income and household size to see what subsidies each qualifies for.
5. Compare all combinations. Calculate the total annual cost for each scenario: both on marketplace plans, one on employer and one on marketplace, one covering the other as a domestic partner, and so on. Include premiums, expected out-of-pocket expenses, and any imputed income taxes.
6. Verify provider networks. Make sure each partner's doctors, specialists, and preferred hospitals are in-network on their chosen plan. Different plans may have different networks even from the same insurer.
7. Enroll during open enrollment. Each partner submits their own marketplace application during the open enrollment period. Make sure both applications are completed before the deadline.

The Bottom Line

Health insurance for unmarried couples requires a different approach than it does for married couples, but that difference is not always a disadvantage. You cannot share a marketplace plan, and domestic partner employer coverage comes with tax implications that married couples avoid. But filing as separate tax households means each partner's subsidy eligibility is based solely on their own income, which can result in significantly more total financial assistance than a married couple with the same combined earnings.

The key is to treat your coverage decisions as a coordinated strategy. Evaluate every option available to each partner, calculate the total combined cost of each scenario, and choose the combination that gives you the best coverage at the lowest total price. If one partner has access to an affordable employer plan, use it. If both partners are on the marketplace, take advantage of independent subsidy calculations. If you have children, strategically decide who claims them as dependents to maximize tax credits and subsidy eligibility.

Do not assume that marriage would solve your health insurance challenges. In many cases, unmarried couples pay less for coverage than they would as a married couple. Run the numbers, understand your options, and make the decision that is right for your specific financial and health situation. Your relationship status does not have to be a barrier to affordable, quality health coverage.