By Lindsay Engle Updated: August 19, 2021 Categories: Coping with Divorce, Financial Issues
It is common in many marriages for one spouse to maintain the medical insurance for the entire family. In many instances, one spouse just has cheaper or higher quality coverage. But what about the matter of divorce and health insurance?
In some situations, there is a spouse that does not work or has employment that does not provide health insurance benefits. No matter the reason, the matter of health insurance must be dealt with as a part of any divorce.
Many people across the United States are covered by employer coverage or their spouse’s group plan. For many employer plans, health insurance is provided to eligible dependents of the subscriber. The health insurance company will establish who meets the definition of an eligible dependent.
Once a Judgment of Divorce is entered, the non-subscribing spouse will no longer qualify as an eligible dependent and can’t remain on their former spouse’s policy. Children who are eligible can remain on the insurance policy post-divorce.
For individuals who do not have access to medical insurance through an employer, they will need to obtain an individual policy, this can be an expensive bill for many people.
Another possibility would be to accept COBRA benefits that allow you to remain on the ex-spouse’s policy; this option would only be temporary, and it would be costly.
If the dependent spouse can acquire their own health insurance through their employer, that would be the best option. A former spouse will not be required to automatically fund a new medical insurance policy regardless of the employment status of either party unless otherwise negotiated in the settlement agreement.
No matter what option you go with, you will want to be prepared. Communicating with your former spouse, your attorney, and the health insurance providers will make decisions easier for you.
The American Psychological Association states that between 40 and 50 percent of married couples in the United States get a divorce. Fortunately, the Affordable Care Act has you covered.
The Affordable Care Act was a comprehensive health care reform law that went into effect in March 2010. This law provides people with subsidies that lower health care costs for households. This coverage is sometimes referred to as ACA or “Obamacare”.
For those that have a chronic illness, it is illegal for companies to refuse coverage based on pre-existing health conditions. This is great for people who would have been denied coverage in the past after leaving a spouse’s plan.
You will qualify for a special enrollment period if you have experienced a qualifying life event, such as a divorce, marriage or the birth of a child. The Affordable Care Act offers an alternative to COBRA insurance and is more cost effective.
Under the affordable care act, divorcing may save money for both parties through subsidies on their Obamacare policy. In 2017 (applies to coverage in 2018), an individual making up to $48,240 a year will qualify for a subsidy.
If they are a couple with no children, they cannot make more than $64,960 to qualify for the same subsidy. Meaning the burden of cost is heavier on a two-person family than on two single people.
If each married spouse had an income of $40,000 per year, they would have a joint income of $80,000 which is too high for a married couple that needs to qualify for a subsidy. As a result, there is a financial benefit to getting a divorce or never getting married.
The spouse responsible for paying alimony may save money by arguing that alimony should be lower since the receiving spouse’s monthly expenses are lower with a subsidy on their insurance.
Medical coverage from a spouse can sometimes last way beyond the length of the marriage itself. A former marriage may help you obtain government-sponsored Medicare if you are divorced and approaching the age where you qualify. It is important to understand Medicare after a Divorce.
Medicare is a health insurance plan that is offered by the federal government for people over 65, or for some younger individuals who have certain disabilities.
A person will generally qualify for Medicare at the age of 65 if they worked for the equivalent of 10 years and qualify for Social Security. If you do not have 10 years of work history but you were married for at least 10 years to someone who does qualify for Medicare, you may still qualify through your former spouse’s benefits. There are some conditions that will need to be met for qualification:
Medicare Supplement policies will fill the gaps in coverage that Medicare doesn’t cover. These plans charge premiums. Medigap policies are individual plans; if a couple divorced, they would not necessarily need to change coverage.
It is not unheard of for seniors to divorce so that a sick spouse can have zero income and qualify for more affordable coverage. Medicaid and Medicare can be used together when a person qualifies for both. It is best to contact your state Medicaid program to see if you would be eligible to receive benefits.
If you receive more than Medicare Part A, you are likely being charged monthly premiums. If you have divorced and had an income decrease, you may qualify for a lower premium. You can request a new decision based on a life-changing event, just provide proof of your life-changing event to qualify.
There are going to be pros and cons to any decision, we just must choose what is best for us as individuals. Whether you are on the fence about divorce or indecisive on which insurance policy will be best for you, the only person with those answers is you.
If you have questions regarding divorce or insurance, contacting a licensed insurance agent in your state or talking with an experienced family law attorney can help you make the decision that will benefit you the most.
Lindsay Engle is the Editor at MedicareFAQ, a learning resource center for senior healthcare. Lindsay loves working in the senior healthcare industry. She has a great passion for animals and loves boating. In her spare time, she enjoys snuggling on the couch with her pets as well as fishing with her boyfriend. www.medicarefaq.com
“Love bears all things” equals people allowing abusive partners to continue abusing them. This isn’t just “crazy lady” talk, it’s downright dangerous, and the people who belong to churches that pressure women (or men) to stay with their abusers are complicit in crimes.
My wife had a long term affair with a married man, left me for him, took 10k from me so she could get an apartment with her married boyfriend that also left his wife.
Upon spousal separation in Ohio , does a spouse have to cover dental and vision insurance for spouse in addition to health insurance (for sure health coverage)?
I was looking for an answer to my problem and can’t find anything. My divorce is not final and my ex cancelled my health insurance. I have been uninsured for 6 months now and I am unable to obtain any because we are still married. I really don’t feel safe in this pandemic without health insurance and I don’t know what my options are at this point…
If you’re eligible for Medicare, you can enroll in at least Part A, it’s premium free. That will give you your hospital insurance coverage. For your doctors coverage, you’ll need to enroll in Part B. Part B does come with a monthly premium, but there are many low-income subsidies you may be eligible for due to your change in circumstance. These subsidies will help cover the premiums for Part B.You will not be penalized for not enrolling in Medicare as soon as you’re other health insurance was dropped as long as it has not been more than 12 months. If you’re within 63 days of losing coverage through an ex-spouse, you’ll get a Special Enrollment Period to enroll in a Medigap plan where pre-existing conditions won’t matter. If you’re under 65 and have been collecting SSDI for at least 24 months, you’ll be eligible for Medicare as well. In this case, a Medicare Advantage plan will usually be more affordable until you turn 65. I’m not an ACA expert, but I believe if you’re not eligible for Medicare, you can get an ACA plan with a subsidy as long as you complete the information regarding a change in circumstance.
CAN MY SPOUSE OR PARTNER TERMINATE MY HEALTH INSURANCE BEFORE OUR LEGAL SEPARATION OR DIVORCE IS FINAL?
No. Once you have filed for divorce or legal separation, or have been served with a Petition and Summons for divorce or legal separation, specific orders automatically go into effect restraining you and your spouse or partner from taking certain actions. These orders are called Automatic Temporary Restraining Orders (ATROs) and can be found on the second page of the family law Summons. They specifically prohibit you and your spouse or partner from altering any insurance coverage, including but not limited to, canceling existing health insurance benefits or terminating the other spouse or partner as a beneficiary of insurance. The ATROs remain in effect until the final judgment is entered, the Petition is dismissed, or until further order of the court, whichever occurs first.
Great information! I was going to comment on this as well that they should contact a lawyer if the spouse dropped their insurance prior to the divorce being finalized through the court system.
what about is it is only for child support and spousal support.In Ohio, if my wife and I have been living apart (no divorce, no separation, annulment, NOTHING as of yet) for over 3 years, but she is still on my employer’s health/dental/vision plan, am I able to discontinue her health coverage (with her knowledge, of course)? Everything I’ve read so far states that there are no rules against this. Thank you!
Can I separate from husband and get cheaper healthcare! Can I still live in same house?
Obama care is way expensive
am I entitled to proof that my ex-wife has an insurance policy, I give her $350 a month towards the insurance, however she’s reluctant to provide proof?
