Tag Archives: Health Insurance

What Happens with Spousal Health Insurance After Divorce?

Health Insurance ApplicationYou can learn online how to get a divorce in Utah, and you could find a legal practice that can help you through the process. With all the procedures, documents, and tasks that need to be done in a divorce, Kelly & Bramwell, P.C. noted that you might forget the small details. Child custody and asset division may be important in a divorce, but the management of your health insurance coverage matters too.

Divorce Ends Health Insurance Too

In a divorce, you may think that you can continue to rely on a spousal health insurance coverage that you have through your spouse’s employer. Unfortunately, you lose that coverage once you finalize your divorce. Post-divorce, you will have to apply for coverage for yourself, and that can be quite a hassle if you fail to deal with it early in the divorce proceedings.

Option 1: Extend the Coverage

To extend your insurance coverage, you can appeal to a federal law called Consolidated Omnibus Budget Reconciliation Act (COBRA). Under this law, you can qualify for continued coverage through your spouse’s employer if the company has 20 or more employees. You can give the health plan administrator notice within 60 days post-divorce to avail of COBRA coverage.

Downsides of COBRA

Now, for some people, COBRA coverage can be expensive. Under it, you shoulder the entire premium because your spouse’s employer is not required to subsidize the costs. In fact, you may even be charged an extra 2% for administrative costs. At the same time, COBRA coverage only lasts for 36 months.

Option 2: Get Your Own Insurance

An alternative to COBRA coverage lies in the health insurance provided by your employer. You can look if the provision will only cost little or nothing. If it is, then you’re better off with your employer’s coverage plan. For self-employed individuals, private insurance can also be viable choices that have lesser costs with lengthier coverage than the COBRA option.

Your marriage may end soon, but your health insurance can still stay as long as you replace your current policy with a new one.