Health Insurance After Divorce in California – FAQs
If you have health insurance coverage under your spouse’s plan and are divorcing, you’ll need to be proactive in your negotiations to retain the existing coverage or select a new option to ensure medical insurance is uninterrupted.
Below, we outline the steps you can take to secure health insurance after divorce and protect your health moving forward.
Do I lose Insurance Coverage After the Divorce?
If you were covered by your former spouse’s employer-sponsored health plan, you will lose that coverage once your divorce is finalized and you are legally single. After the divorce, you usually become ineligible for that plan unless you take specific steps to maintain your coverage.
Your spouse must inform the employer’s plan that the divorce is final. Once this notification is made, you will receive a letter stating that your coverage will be terminated. However, you have the option to enroll in COBRA if you wish. Typically, the plan will end your coverage within a few weeks of receiving the notice, but the exact timing may vary. It’s crucial to check your plan’s specific timeline to prevent any gaps in your coverage.
Is Legal Separation an Alternative to Retain Health Insurance Coverage?
In some cases, opting for legal separation instead of divorce can help maintain health insurance coverage. However, a majority of plans changed their rules more than a decade ago to limit the right of a legally separated spouse from continuing to be insured.
Most plans treat legal separation the same as divorce and do not alter their rules. However, some employer-sponsored plans allow coverage to continue for a legally separated spouse. In these cases, the plans maintain coverage, whereas they typically end it upon divorce.
Clearly it will be imperative that you research if your current insurance will extend coverage for a legal separation or not.
How does a Suspended Divorce Keep Insurance Coverage Intact For All Cases?
A lesser-known but crucial strategy for keeping health insurance coverage for a spouse who is insured through their partner’s employer is to consider a suspended divorce.
A suspended divorce in California provides finality to the divorce process with a judgment entered by the court but without terminating marital status. This means that the legal process is paused before you are deemed single and not married/ By staying married, you can typically maintain coverage under employer-sponsored plans until the divorce is completely finalized.
A couple can pre-determine that end date in the settlement document or can agree to an end date in the future. Upon the end date, they are made legally single and only at that time will insurance rights terminate.
This is a special option known by few attorneys and I have used this so many times to help couples reach agreements while ensuring the health of both parties are prioritized when that issue is of utmost concern.
How Long is COBRA Coverage Available Once Divorce is Final?
The Consolidated Omnibus Budget Reconciliation Act (COBRA) allows you to temporarily continue coverage under your former spouse’s employer-sponsored plan for up to 36 months. While COBRA ensures uninterrupted access to healthcare, it can be expensive because you’ll be responsible for the full premium, including the portion previously paid by your spouse’s employer.
Is Open Enrollment Available to Join My Employer’s Plan Once Divorce is Final?
If you are employed and your employer offers health insurance, enrolling in their plan is often the most cost-effective solution. Divorce qualifies as a special life event which allows this plan to be accessible to you upon the final date of dissolution. So the plan is opened for you to enroll no matter when the divorce is final even if outside of the standard open enrollment period. Check with your HR department to learn about your options and deadlines.
Is Covered California Health Insurance an Option After Divorce?
If you don’t have access to employer-sponsored insurance, you can shop for a plan through Covered California Health Insurance Marketplace. Again, your divorce is considered a life changing event and so you will be given open enrollment to secure a new health plan whenever your divorce is finalized.
If you have very little income, Medi-Cal may be an option for insurance or alternatively you could be eligible for discounts to Covered California could be available to make your coverage very affordable or at least more affordable than if you don’t qualify for subsidies.
How can a Health Insurance Broker Help Me Find the Right Coverage?
Working with a health insurance broker can help you find the best plan for your situation. I refer many clients to Jacques Dionne who generously spends time with you to help understand your options and explore the world of plans to find the right one for you He’s such a help to my clients and you should call him at 858-560-6100.
How Mediation Helps To Create a Divorce Settlement That Prioritizes Health Insurance
Health insurance coverage options are available as set forth in this post so long as you make a plan and agree on the details in your Marital Settlement Agreement. As a divorce mediator in San Diego, I am able to be creative in the negotiations to help clients mediate settlements that prioritize health and insurance.
If you have significant health concerns, you may request that your spouse contribute to your health insurance premiums and even out of pocket costs. Additionally, if you have children, ensuring their continued coverage should be a priority in your custody and support agreements. And retaining coverage through a suspended divorce or legal separation is also an option which must be part of the divorce settlement. Only mediation enables the spacce and collaboration for this type of dialogue in my opinion.
Determine Your Options
Call 858-255-1321 or schedule a consultation by clicking this link to book a time with us online.
Take action now toward a collaborative divorce with mediation lawyer Scott Levin. It’s the smart move for you and your health.