Divorce can significantly impact many aspects of life, including health insurance coverage. Spouses must consider their health insurance options during and after divorce.
It is important to understand the ways divorce affects health insurance.
1. Loss of coverage for the non-employee spouse
If one spouse is covered under the other’s employer-sponsored health insurance, the non-employee spouse typically loses that coverage after the divorce is finalized. This means they will need to find new health insurance, either through their own employer, purchasing a plan privately, or using other available options.
2. COBRA continuation coverage
Under federal COBRA law, a non-employee spouse may qualify to continue coverage through the ex-spouse’s employer-sponsored plan for up to 36 months. However, COBRA can be costly, as the non-employee spouse must pay the full premium without employer contributions. This can be a temporary solution while seeking more affordable options.
3. Coverage for children
Divorce does not typically affect health insurance coverage for children. California law requires both parents to ensure that their children have health insurance. If one parent provides coverage through an employer-sponsored plan, the court may require that parent to maintain the coverage. Parents may also share the cost of coverage and any medical expenses not covered by insurance.
4. Alternative options for health coverage
The non-employee spouse may consider other options for health insurance, such as purchasing a plan through the Affordable Care Act (ACA) marketplace. Depending on their income, they may qualify for subsidies to make the coverage more affordable. It is important to compare costs and benefits to find the best option.
Navigating health insurance changes after divorce
Divorce often leads to changes in health insurance coverage, especially for the non-employee spouse. Understanding options can help ensure that all family members have the coverage they need after divorce.
