Divorce brings many changes, including adjustments to health insurance coverage. Losing coverage can be a major concern, especially for individuals who relied on a spouse’s plan. Understanding available options can help ensure continuous coverage.
Health insurance coverage after divorce
Many spouses share employer-sponsored health insurance. After divorce, the spouse who is not the policyholder usually loses access. Employers generally do not allow an ex-spouse to remain on the plan. This can be challenging for those without affordable insurance through their employer.
COBRA continuation coverage
COBRA allows a former spouse to remain on an ex-spouse’s employer-sponsored health plan for up to 36 months. While a temporary solution, COBRA coverage is often expensive since individuals pay the full premium. Comparing this option with other plans helps determine the most cost-effective choice.
Marketplace health insurance plans
The Affordable Care Act (ACA) provides access to individual plans through the Health Insurance Marketplace. Divorce qualifies as a life event, allowing enrollment outside the open period. Depending on income, tax credits and subsidies may lower costs. Marketplace plans vary in coverage and cost, offering flexibility.
Employer-sponsored health insurance
Some may have access to health insurance through their own employer. Many companies allow adjustments to coverage after a qualifying life event like divorce. Comparing employer-sponsored options with other available plans can help determine the right choice.
State and federal health programs
Individuals with limited income may qualify for government programs like Medicaid or CHIP. Eligibility depends on income and household size. These programs provide comprehensive coverage at little or no cost, making them an important option.
Understanding health insurance options before finalizing a divorce helps prevent coverage gaps. Reviewing potential costs, available plans, and eligibility for government programs ensures access to necessary medical care without financial strain.
