What Happens To Health Insurance After A Divorce?

Going through a divorce brings many changes. One of the more significant issues to address is what happens to health insurance after a divorce. Health coverage is something many people take for granted during marriage, as most rely on their spouse's plan. 

Going through a divorce brings many changes. One of the more significant issues to address is what happens to health insurance after a divorce. Health coverage is something many people take for granted during marriage, as most rely on their spouse's plan. 

Can You Stay on Your Ex-Spouse’s Health Insurance Plan?

Many people assume that they can stay on their ex-spouse’s health insurance plan after a divorce. Unfortunately, this isn't always the case. The good news is that there are options to help you keep some form of health coverage. However, you need to know how to access them.

Suppose your ex-spouse’s insurance plan is through their employer. In that case, the law requires your employer to offer continued health coverage. You can keep your plan for a limited time under COBRA.

COBRA allows former spouses to stay on the existing plan for up to 36 months after a divorce. Nevertheless, this extended coverage is often more expensive. You will now be responsible for the full premium instead of sharing the cost with your ex.

The primary drawback of COBRA is its cost. While it helps maintain the same insurance plan, it can be quite expensive since your ex-spouse's employer usually pays a portion of the premium. Under COBRA, you will be responsible for covering the entire premium, which could be a financial burden. 

​Additionally, you may find that COBRA coverage does not offer the same extent of benefits as your previous plan.

What Happens If You Don’t Qualify For COBRA?

If you don’t qualify for COBRA or don’t want to take on the financial burden of continuing on your ex-spouse’s plan, there are other options for getting coverage. The most common option is to apply for health insurance through the Health Insurance Marketplace.

Under the Affordable Care Act (ACA), divorce is considered a “qualifying life event.” This means that you can apply for coverage outside of the usual open enrollment period. If you are recently divorced, you may qualify for a Special Enrollment Period (SEP). This allows you to select a new plan that fits your needs. You can visit Healthcare.gov or your state’s health insurance marketplace to explore your options.

​When choosing a plan through the marketplace, you might qualify for subsidies based on your income. These subsidies can help reduce your premiums and make health insurance more affordable. Remember that the coverage you are eligible for and the monthly premium you'll pay will be determined by your income and household size.

Are There Other Ways to Get Coverage?

If you’re not interested in COBRA or the Health Insurance Marketplace, there are still other ways to find health insurance after a divorce. 

One of these options is Medicaid, a government program that offers free or low-cost coverage to people with limited incomes. Eligibility for Medicaid depends on your income, state of residence, and other specific factors. If you’re struggling financially following your divorce, Medicaid may be a viable option to help cover your healthcare needs.

Another option to consider is getting insurance through your employer. If you have a job that offers health insurance, you might be eligible to sign up for a new plan, especially if you are losing your health coverage due to the divorce. 

​Some employers allow new hires or employees in your situation to enroll in health insurance plans at any time during the year, though this can vary from one employer to another. Be sure to check with your HR department to understand your options and the enrollment deadlines.

What About Your Children’s Health Insurance?

If you have children, you’ll also need to address their health insurance after the divorce. Depending on your situation and your custody arrangement, one parent may be responsible for keeping the children on their health insurance plan. This may be determined during the divorce settlement or as stated in the final divorce decree.

In many cases, the court will order the parent with the higher income to maintain the children's coverage under their health plan. If neither parent has coverage, they may be required to find a plan for the children. 

​Just like with adult coverage, the Health Insurance Marketplace and Medicaid are options for finding affordable health insurance for children after a divorce.

The Role of Matrimonial Settlement Agreements

When it comes to health insurance after a divorce, one of the most important documents is the divorce settlement agreement, MSA). 

This legal document outlines many of the important terms and conditions of the divorce, including decisions about healthcare coverage. It can specify who will remain responsible for covering health insurance, including both the ex-spouse and any children.

As you negotiate your divorce settlement, it’s important to address healthcare coverage. You may be able to negotiate who will pay for COBRA coverage, who will get coverage under a new plan, and what happens if your ex-spouse’s health insurance plan changes. Your DSA will serve as a reference for these arrangements and can help avoid confusion later on.

​In addition to the MSA, some divorce mediation services help resolve issues related to health insurance. They also help both spouses understand their coverage options after the divorce. An experienced divorce mediator can guide you through these decisions. They bring both legal expertise and practical solutions to reduce any conflicts surrounding health insurance.

Understanding Your Health Insurance Options After Divorce

Handling health insurance after a divorce can be overwhelming. Once your divorce is finalized, one of the most pressing concerns is securing health coverage. If you were previously on your spouse’s plan, it’s important to understand what your next steps are.

One common option is COBRA. This allows you to remain on your former spouse’s workplace health insurance plan for up to 36 months. However, the downside is that you will now be responsible for the entire premium, which can be quite expensive. 

If COBRA isn’t a viable option, applying for health insurance through the Health Insurance Marketplace might be a better solution. Since divorce is considered a qualifying life event, you can use it outside the usual open enrollment period. Depending on your income, you may even qualify for subsidies to help reduce your premiums.

If you’re in a financial bind, Medicaid might also be an option. Depending on your state’s rules and your income level, Medicaid offers affordable health coverage to low-income individuals. This can be a helpful resource as you transition to life after divorce.

Managing Children’s Health Insurance

If you have children, one of the most important aspects of your divorce settlement will be determining their healthcare coverage. Typically, one parent is responsible for keeping the children on their health insurance plan. 

If neither parent has coverage, it becomes necessary to find a new plan via the marketplace or Medicaid. Be sure to address this issue during your divorce proceedings to avoid future confusion or legal complications.

At Montclair Divorce Mediation®, we focus on helping you navigate the mediation process, including addressing health insurance concerns as part of your settlement. 

​If you need guidance with health insurance or your divorce settlement, we’re here to help. Contact us for assistance.