Puja Sachdev | December 27, 2024 | Divorce
In addition to increased living expenses associated with splitting one household into two during a divorce, many people are concerned about the added cost of health insurance when they are no longer eligible to claim coverage from their ex-spouse’s employer-sponsored plan.
As part of the divorce process, you may have to figure out how to cover the cost of a new health insurance plan. How can you get health insurance after divorce?
Report To Employers
Even if you and your spouse successfully negotiate an amicable divorce with the help of an experienced mediator and want to maintain your current coverage, it may not be possible. If your family is covered by an employer-sponsored plan, you must report major life changes, including a divorce, to your employer (specifically your plan administrator) within 60 days.
Ex-spouses are no longer eligible for coverage under family plans, but they may qualify for continuing access to coverage under the Consolidated Omnibus Budget Reconciliation Act (COBRA). You could also negotiate a divorce agreement that includes ongoing financial support to cover health insurance costs for the spouse no longer eligible for coverage.
Regardless of child custody arrangements, it is usually best for children covered by an employer-sponsored plan to maintain this coverage following divorce–unless the other parent can secure an employer-sponsored plan that offers better coverage at less cost.
Understand COBRA Coverage
If you are part of your spouse’s employer-sponsored group plan at the time of divorce, you are eligible to continue with your current plan for up to 36 months after the fact through COBRA coverage, provided the employer has 20 or more employees. Even companies with fewer employers may still offer a mini-COBRA plan.
Unfortunately, this option could be quite expensive. Without employer assistance, you will be responsible for the full cost of coverage, and you may only continue with your current plan. You might also be charged an additional administration fee, which could make this one of the more expensive options to pursue.
Learn About Coverage Through Your Employer
If your employer offers health benefits, you should explore your options. The benefits/costs might not be as good as your spouse’s employer-sponsored plan, but this is often the most affordable option in terms of out-of-pocket expenses.
You should know that divorce is a qualifying life event that allows for enrollment in a health insurance plan, even if it doesn’t fall during the open enrollment window.
Look Into ACA Coverage
The Affordable Care Act (ACA) is designed to make health insurance available to everyone, even those from low-income households. If health benefits are not offered through your employer and you have concerns about paying for coverage, the ACA marketplace may subsidize plan costs, depending on your income and other factors.
Consider Medicare/Medicaid
If you are over the age of retirement, have a disability, or have limited financial resources at the time of your divorce, you may be eligible to enroll in Medicare or Medicaid. Some states also offer expanded coverage for those who are pregnant, under the age of 21, or to parents or caretakers of eligible children or relatives, for example.
Research New Plans Immediately
For your own protection, it is best to have a new plan in place before the divorce is final so there is no lapse in coverage. Most couples, while married, choose the most beneficial plan for the family, so new coverage will likely entail added expense. However, when you find a plan early, you have the best chance to negotiate for financial assistance from your spouse.
Contact Our Divorce Law Firm in San Diego, CA. Call us at (619) 866-3756
Contact our experienced San Diego divorce lawyers at San Diego Divorce Lawyers, APC, today for legal assistance. Contact us at (619) 866-3756 to schedule a free consultation.
We proudly serve throughout San Diego County. We are located in San Diego, California.
San Diego Divorce Lawyers, APC
2851 Camino del Rio S #430
San Diego, CA 92108
(619) 866-3756
