Aside from relying on each other, spouses also rely on each other’s health insurance policies to stay in good health. Divorcing partners must ensure they retain their policy after dissolving their marriage.
WebMD explains two strategies for maintaining coverage during a divorce. The divorce settlement and COBRA may help parties as they transition.
Divorce settlement
Partners may include health insurance as part of the divorce settlement. Spouses covered under another spouse’s plan during the marriage could request to retain coverage in the divorce agreement. Parties who provided coverage may pay an extra premium if they continue covering an ex-partner and shared children.
COBRA
Under COBRA law, an ex-spouse may remain on a former partner’s employer-sponsored health plan as long as the company has at least 20 employees. If so, the former spouse continues receiving coverage for 36 months. With this option, divorcing partners must pay all their monthly premiums for COBRA coverage without financial help from the employer.
Those going through a divorce must contact the plan administrator within 60 days of legally separating or divorcing. Someone working for a company that offers health benefits may consider enrolling in her or his employer’s plan to save money. It makes sense to ask human resources about how coverage works and how long it lasts. While most insurance carriers do not permit employees to enroll outside the open enrollment period, they make exceptions for those going through a divorce.
Divorcing partners have a lot of matters to tend to as they set up their post-divorce lives. Understanding options for resolving those matters lets parties know which options benefit them most favorably.