If you are currently in the middle of a divorce, the last thing you want to think about is your health insurance--yet it may be among the top things you absolutely should think about as it can have far-reaching effects should you and children find yourselves without health insurance. Be aware that in some states separation is treated much the same as divorce in certain areas, health insurance being among them, so even if you are only separated now, check the laws in your particular state or consult your attorney to ensure you won't find your health insurance has been taken away.
Coverage Dependent on Your State and Your Employer
The question of whether or not you will be allowed to stay on your ex-spouse's health insurance after a divorce really has a wide variance from state to state and employer to employer. In some cases the employer and insurer will stop coverage as of the date of separation, not the date of divorce. In other states, the court can order your spouse to keep you and any dependent children on their insurance as a part of your settlement agreement, although not all employers will allow this. If you decide to stay on your spouse's health insurance with the idea of just not mentioning that the two of you are divorced, your spouse could be charged with fraud for not informing the insurance company, and you could be charged as an accessory, so no matter how badly you need the insurance, never, never, do this!
COBRA
COBRA is the federal law that entitles you to continued coverage in an employer's group health plan, even if you've become ineligible to participate because of your divorce. If you were covered under your spouse's employer-sponsored health plan before the two of you divorced, it is very likely you will be able to continue with your current health insurance for up to 36 months--although you will be responsible for the premiums. The primary advantage of applying for COBRA benefits is that it will allow your health insurance coverage to be uninterrupted. After the 36 month period, however, you will be responsible for your own health benefits.
Your Options
After your divorce you have basically four options which can enable you to keep your health insurance coverage:
- Continue your coverage through your ex-spouse's policy through COBRA
- Get coverage through your own employer if you are working; the cost could be lower than COBRA
- Ask for health insurance as a part of your divorce settlement. A good lawyer can make continued health care coverage a part of your divorce settlement, and health care insurance can last much longer than temporary alimony payments, and take a huge worry off your mind at the same time.
- Purchase an individual health benefit plan, which will, again, cost a fair amount, possibly more than COBRA, but it is something you should check into.
Legal Help
An experienced divorce attorney knows all your state laws regarding health insurance benefits after divorce, COBRA, or getting health insurance benefits as part of your divorce settlement. It is definitely to your advantage to have a good attorney looking out for your long-term benefits and rights, plus it is one less thing you have to worry about during this stressful time.
