Understanding divorce and health insurance coverage

Divorce brings numerous changes to your life, including your health insurance coverage. Understanding how divorce impacts your health insurance and knowing the alternatives can help you navigate this transition.

Loss of coverage

One of the immediate concerns following a divorce is the potential loss of health insurance coverage. You might lose your coverage if you were covered under your spouse’s employer-sponsored health plan. Employer plans typically only cover current employees and their dependents, so the end of the marital relationship also ends your eligibility.

COBRA continuation

The Consolidated Omnibus Budget Reconciliation Act (COBRA) offers a temporary solution to losing health insurance due to divorce. COBRA allows you to continue your existing health insurance plan for up to 36 months. While COBRA ensures you don’t lose coverage immediately, it can be costly. You will pay the full premium, including the portion your spouse’s employer previously covered, plus a small administrative fee.

Managing dependents

Divorce also impacts coverage for your dependents. If your spouse’s plan covered your children, address their coverage during the divorce proceedings. Both parents should ensure that the children maintain continuous coverage. This can involve negotiating which parent will carry the insurance or how to share the costs.

Alternatives to find new coverage

1. Employer-sponsored plans: If you have a job, check if your employer offers health insurance. You might be eligible to enroll outside the usual open enrollment period due to a qualifying life event like divorce.
2. Individual health plans: Consider purchasing an individual health plan through the Health Insurance Marketplace. These plans can be tailored to fit your needs and budget. Additionally, you might qualify for subsidies based on your income.
3. State programs: Connecticut offers health programs for residents who meet certain income and eligibility criteria. Programs like HUSKY Health can provide coverage for low-income individuals and families.

Ensuring continuous coverage post-divorce

Divorce significantly impacts your health insurance coverage, but understanding your options helps you maintain the coverage you need. By being proactive and informed, you can make the best decisions for your health and well-being.