Child Support Guidelines are calculated using reasonable cost limits in the pro rata share of the actual insurance premium
Calculating Reasonable Cost Limits
43 O.S. § 118F states:
Reasonable in cost means that the pro rata share of the actual premium cost for the child or children paid by the insured does not exceed five percent of the gross income of the responsible parent.
Typically, determining if the insurance cost is reasonable could be done by just looking at the 5% of income field on the guidelines. However, simple math must be done to determine if the parties’ pro rata share is reasonable in cost.
To calculate the pro rata share of the actual premium cost.
Total insurance cost for child(ren) X NCP’s pro rata share (percentage share of income from guidelines) = NCP’s pro rata share of insurance cost.
Compare the NCP’s pro rata share of insurance cost to the 5% of the NCP’s income to determine if the cost is reasonable.
Example of calculating the pro rata share of the actual premium cost:
Facts for the example
- The NCP’s income is $3500.00 per month
- The CP’s income is $1500.00 per month
- The NCP is ordered to carry insurance. The NCP employer has insurance available for the children at $180.00 per month
- The NCP’s pro rata share is 70%.
- 5% of the NCP’s income is $175.
- Two children
Here is how the math for this looks:
$180 X .70 = $126.00
The NCP’s pro rata share of the insurance cost is $126.00. This is less than 5% ($175.00) of the NCP’s income so this would be a reasonable cost for insurance.
Child Support Guidelines and Reasonable Cost
The Excel Guidelines displays 5% of income for both parties.
The Insurance Premium Worksheet automatically pulls the amount of the health insurance premium from the child support calculator sheet.
The OSIS GLS screen includes the pro rata share of the insurance premium. This is located directly below the 5% of income for the parties so that it is easy to compare.
There will be a warning that displays if the pro rata premium share is greater than 5% of the income. This will display for both parties as appropriate.
This change to the Guidelines will be beneficial to the NCP and CP and the child(ren) that child support serves.