Your health is the most important asset you have, and health insurance coverage is a close second. If your health insurance is through your spouse’s employer, once the divorce is final you will need to obtain health insurance for yourself. It is very important that there is no gap in coverage, so you must deal with the issue early in divorce negotiations.

Divorce and COBRA – It’s a federal law, not a snake

While your spouse may be required by the court to keep the health insurance for the children, he or she will be unable to maintain the health insurance for you after the divorce.

If your spouse works for a company that employs 20 or more people, then you are eligible to apply for continued health insurance coverage in his employer’s plan under a federal law known as “COBRA” (Consolidated Omnibus Budget Reconciliation Act).

The 60-day rule - Notification upon divorce
 
Your spouse’s employer is required to provide COBRA coverage for you, but only if you notify the health plan administrator within 60 days of becoming divorced. If you don’t give the administrator proper notice, then you will not be eligible for COBRA coverage.

Following divorce, employer-provided coverage may be cheaper

You may not want to be covered under COBRA if you can obtain health insurance through your employer. This is because your spouse’s employer is probably paying for all or a portion of your current health insurance premium.

Under COBRA, you will be responsible for the entire amount of the premium. (Actually, you may be charged 102% of the cost of the group rate.)

If your employer provides health insurance at little or no charge to you, then you are better off obtaining health insurance through your employer. But, for people who do not have this option, COBRA may be the only viable choice.

Before you opt for COBRA coverage, check out other private plans, such as Blue Cross, to compare the benefits and the costs. You may find options that are less expensive and more permanent than the COBRA coverage.

One way to find a list of these private insurers is to ask the personnel at your doctors’ offices what insurance plans they accept, and which ones make payments that are the most hassle-free.

COBRA coverage ends in 36 months

COBRA coverage for a former spouse ends within 36 months. So, you need to be prepared for this coverage to end and secure new health insurance to take its place.

If you have questions about the impact of preexisting conditions on obtaining new health insurance once the COBRA coverage expires, you should contact someone who is knowledgeable about the different kinds of health insurance plans available in your area.

If you are healthy, consider a private plan rather than taking the COBRA coverage for three years. If you take COBRA coverage and become ill during the three-year period, you might find that you are uninsurable at the end of three years when the COBRA coverage expires. A private plan, rather than a group plan under COBRA, would facilitate continuing coverage and might be worth any extra expense.