During the pendency of  the divorce, generally spouses are not allowed to cancel the health insurance coverage on the spouse or children*.  After a divorce, the spouse providing health insurance coverage must inform his/her employer that the ex-spouse needs to be taken off his/her health plan.  This notice to the employer will most likely require the employer to fill out an enrollment or change of policy form and the insurer may require proof of divorce prior to making any adjustments. The ex-spouse will continued to be covered under the employer’s health insurance policy for a maximum of thirty days.   However, after the thirty days, the ex-spouse will not suddenly be without health insurance.

COBRA COVERAGE

When a husband notifies his employer of the divorce, the employer will send notices to the family members on the policy, informing them of their right to COBRA coverage.  COBRA (short for the Consolidated Omnibus Budget Reconciliation Act) provides health insurance plans for ex-spouses when their health insurance might otherwise be cut off.  COBRA can be very costly, for example, if you select COBRA coverage, you may have to pay 100 percent of the total insurance cost plus a 2 percent processing fee.  COBRA benefits are meant to be short-term, therefore the ex-spouse should work on securing another health insurance policy.

GROUP COVERAGE

If the ex-spouse’s employer provides a group policy, he/she will be allowed to enroll under the employee’s health plan immediately instead of waiting until the open enrollment time period.

INDIVIDUAL HEALTH POLICY

Individual health policies work much the same way.  When your divorce is finalized, you’ll have to notify your insurance carrier and the company will terminate the policy you and your ex-spouse shared. Both of you will then have to re-enroll or buy coverage from another insurance provider.  COBRA law does not apply to individual health policies.

*This article only addresses the health insurance coverage for the spouse.  See later posts for discussion of children’s health insurance benefits.