My spouse was covering me on his/her health insurance so what happens to my health insurance once I’m divorced? The unfortunate short answer is, you will lose your coverage. The simple facts are that very few plans allow coverage to continue to for an ex-spouse. Once a Final Judgment of Divorce is signed by a judge, coverage can cease immediately (although most plans allow a 30 day window). With few exceptions, the only coverage categories for an employee are “employee”, “employee and spouse,” and “family”. Since you are neither a spouse nor child of the employee, you would no longer fit into one of those categories.
So what to do? First, find out if COBRA is an option. COBRA is a federal law that allows for the former spouse to continue his or her coverage for either 18 months or 3 years. This is not a permanent solution, however, and comes at a substantial cost. COBRA benefits are often just as, or even more expensive than buying insurance in the open market place. If you are tied to your particular plan and doctors, however, this may be a necessary expense.
Second, do some investigating as to what other coverage options may be available to you. If you are employed, does your own employer provide a coverage option which you had previously declined? Do you belong to a professional or trade association that offers group coverage? What are the monthly costs of buying private insurance coverage similar to your existing plan? That cost can be built into a support or alimony figure once it’s known, so that you can afford to purchase insurance on your own.
Third, look at the options under the Affordable Care Act (“Obamacare”). Under the ACA there are coverage options available that were not previously offered, even for people with substantial pre-existing conditions. The costs will vary based on income and age, but one of the main purposes of the ACA was to create coverage options for people such as divorced spouses who did not have other options available to them through employers. Information can be found at www.healthcare.gov.
Fourth, check with the State of New Jersey. The New Jersey Family Care program offers coverage for families and children at www.njfamilycare.org for which you may qualify. Most of these options are means-tested, but individual circumstances may allow for qualification.
Finally, there is the unusual option of getting a “Bed & Board” Divorce. In this scenario you are divorced from your spouse for all intents and purposes, but your marriage is not actually legally dissolved. Since the parties are still technically married, neither could get remarried but in most circumstances it would allow a spouse to keep the other party in his/her insurance coverage. Care must be taken given that some insurance providers are getting wise to this legal loophole and denying coverage anyway, but in most cases it is a viable option if both parties are willing. Consent from both spouses is required, however.
The moral of the story is to investigate your options and plan with your attorney for the eventuality of the lost coverage. With some care, the damage can be mitigated.
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