Health Insurance Options Following Divorce

Many families have employer provided and/or paid for health insurance benefits that cover the entire family. Having the insured spouse maintain health insurance coverage after your divorce may be a negotiable part of your divorce settlement. It is very important that there is no gap in coverage, so you should deal with the issue early in divorce negotiations.
If you are unable to negotiate, once the divorce is final, you will need to maintain your own health insurance. You may qualify for COBRA coverage. COBRA is a federal law which mandates that a person covered under a health insurance policy be given the right to continue that coverage, at their own cost, for a set time period if certain requirements exist. COBRA is temporary and you will need find permanent health insurance, either on your own or through your own employer.
When the non-covered spouse is ill, some couples have tried to opt for a legal separation instead of a divorce in order to maintain the ill party’s health insurance. While the parties will remain married, their property, custody, and support issues will be addressed in their separation agreement. Under some circumstances, this is an optimal resolution. However, if you do decide to legally separate rather than divorce, please tread carefully. Some health insurance companies view a legal separation as essentially the equivalent of divorce, and so they will not continue coverage for a separated spouse.
Your children, on the other hand, may remain on your spouse’s health insurance plan after the divorce, but, there may be a question as to who will pay the premiums for the children.
For more information about divorce and other family law issues contact The Reape-Rickett Law Firm at 661-288-1000, located at 25152 Springfield Court, Suite 100 in Valencia, California.