Divorce impacts virtually every aspect of your life, and anticipating the various effects it can have is an important part of moving forward. One impact you should start preparing for now is how divorce will affect your health insurance.
If you and your spouse are currently on the same health insurance plan, some aspects of your coverage will likely change after the divorce. A divorce lawyer in Parker, CO, can help you explore your options for maintaining coverage.
How Does Divorce Impact Health Insurance?
If you and your spouse are currently covered under the same health insurance plan, divorce can alter how you receive health insurance coverage. A few potential impacts of divorce on health insurance may include:
- You lose access to the spousal benefits that you currently rely on for coverage.
- Your spouse is no longer eligible to remain on your plan, which could change your premiums if you no longer meet the requirements for "group rates."
- The health insurance that covers your children may change.
Thankfully, Colorado and federal law have protections in place to help individuals maintain coverage for a certain period after divorce. Your health insurance coverage likely won't abruptly end on the day your divorce is finalized. Colorado law also prioritizes coverage for children in divorce, and your divorce decree will specify which parent will be responsible for covering them.
Your spouse is prohibited from canceling health insurance in retaliation during your divorce. If they want to make significant changes to health insurance, both parties must agree. A divorce attorney can act as your "divorce guide" to help you understand how your health insurance may change and what modifications are legal under Colorado law.
Potential Options for Maintaining Coverage After Divorce
Understanding your options for maintaining health insurance coverage after divorce can help you feel more confident moving forward. If you rely on your spouse for coverage, you may be eligible for any of these health insurance options.
COBRA Coverage
The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) requires continuation coverage for certain individuals who currently rely on group health coverage that would otherwise be lost due to certain events, including divorce.
If you currently receive coverage under your spouse's employer-sponsored plan, you may be eligible for coverage continuation for up to 36 months under COBRA. However, you will generally be required to pay the entire group premium and a 2% administrative fee, which will be more expensive than your current premiums. You have 60 days from the day you would lose coverage to enroll in COBRA.
Connect for Health Colorado
Extending your spouse's health insurance coverage through COBRA is only a temporary solution. You may also explore enrolling in a new health plan through Colorado's insurance marketplace, Connect for Health Colorado.
Divorce is considered a "qualifying life event" that would make you eligible for a 60-day Special Enrollment Period, allowing you to start a plan outside of the normal open enrollment window. Plans range in cost and coverage options depending on your household income.
Explore Coverage Through Your Employer
If you previously relied on your spouse's group insurance plan for coverage, you may not have investigated coverage through your own employer. Speak with your Human Resources department about insurance coverage options that may be available to you. Again, divorce may be considered a qualifying life event that allows you to enroll in an employer-sponsored plan outside of the usual window.
Consult a Divorce Attorney About Your Legal Options
Changes to your health insurance coverage may be just one of many shifts that will arise after divorce. With an experienced divorce attorney, you can understand your legal rights and options and make informed decisions
Whether you are wondering about the difference between separation vs. divorce or exploring whether your spouse can legally kick you off their insurance plan before the divorce, Palmer Family Law can provide compassionate legal support. Call 720-399-7434 for a consultation.