CSG Law Alert: How Does Divorce Impact My Health Insurance? What You Need to Know
Planning for health insurance after a divorce is often overlooked, but it is an important issue to address early. Evaluating your coverage options at the start of the process can help avoid gaps in insurance and unexpected costs.
During a divorce, spouses are generally expected to keep existing insurance coverage in place. If one spouse has been providing health insurance during the marriage, that coverage typically continues until the divorce is finalized. After the divorce, that coverage usually ends, and the spouse who is no longer covered will need to obtain new medical, dental, and vision insurance.
Divorce is commonly treated by insurance providers as a “qualifying life event,” which may affect eligibility and access to new coverage options. For individuals whose former spouse’s employer has 20 or more employees, federal law may allow temporary continuation of the same employer-sponsored plan through COBRA (the Consolidated Omnibus Budget Reconciliation Act). This continuation coverage is generally available for a limited period, often 36 months following the entry of a Judgement of Divorce, provided that notice requirements are met.
COBRA coverage can be costly, as it typically requires payment of the full premium plus an administrative fee. Because of this, individuals may wish to compare other available health insurance options, including plans offered through resources such as https://www.healthcare.gov.
Understanding available options and associated costs early in the process can help reduce financial and coverage uncertainties following a divorce.
For more information on this issue or other family law matters, please contact the author of this article or the Family Law Group at CSG Law.