Divorce is a challenging transition and one of the many decisions you need to navigate is what to do about your health insurance after divorce.

You are faced with several choices to make and it can be difficult to sort through, but don’t worry, we’re here to help you understand your options for health insurance during separation and after divorce. We’ll walk you through all of your health insurance options and provide answers for your most pressing questions. For example, you might be wondering, how long can you stay on spouse’s insurance after divorce?

Finding the right solution when it comes to divorce and health insurance is crucial for both you and your children. Understanding your options is a great place to start! This includes not only short-term health insurance but also individual or family insurance.

How will divorce affect my shared health insurance plan?

If your spouse had a health insurance plan that covered you, you will be dropped from the plan. If you had a health insurance plan that covered your spouse, they will be dropped from the plan. That being said, it’s important to note that children will not automatically be dropped from a health insurance plan after divorce.

You’ll also need to know how your state treats divorce. Some states view legal separation as the same as divorce and others don’t. If you’re in a state that views separation as divorce, you may lose health insurance coverage through your spouse as if you were divorced.

However, in all states, an employer will probably not allow you to have coverage under your ex-spouse’s health insurance after divorce. Also, keep in mind that your spouse may have to keep you on their health insurance until the divorce is finalized. If they drop you before-hand, they are legally required to add you back. Make sure you understand and protect your rights during divorce.

Divorce is recognized as a qualifying life event so you may be eligible to purchase health insurance through a Special Enrollment Period (SEP) after your divorce is finalized. This SEP allows you 60 days to shop for and enroll in a health insurance plan. If you need coverage after your divorce, it’s important that you enroll during these 60 days or you will have to wait until the annual Open Enrollment Period at the end of the year in order to get post-divorce health insurance.

Can I include health insurance in a divorce settlement?

Yes, when it comes to divorce insurance, you can include health insurance as a part of your divorce settlement. For example, as a requirement in the divorce settlement, you could ask your spouse to provide health insurance for you and your children.

If you are the one providing health insurance for your family, your insurance plan may charge you extra to keep your ex-spouse on your policy. Talk to an expert about health insurance after divorce to make sure you have the best insurance that suits you.

What is the best health insurance option after divorce?

Once your divorce is finalized, you will qualify for a Special Enrollment Period (SEP). This SEP allows you 60 days to shop and enroll in a health insurance plan. You can find affordable health insurance plans in your state with eHealth’s handy online tools. It’s important that you enroll during these 60 days or you’ll have to wait until the annual Open Enrollment Period at the end of the year to get health insurance after your divorce.

Whether you are interested in getting new health insurance or staying on your old insurance after your divorce, there are plenty of options available and each has its pros and cons. For example, the right plan for someone who can get health insurance from their place of work is not necessarily the right plan for a newly single stay-at-home mom. Some of the options you may want to consider include an employer health insurance plan, short-term health insurance, a marketplace plan from the Affordable Care Act, and COBRA.

COBRA

If you are looking for health insurance after a divorce, you might want to consider COBRA, or the Consolidated Omnibus Budget Reconciliation Act. Giving individuals who lose health care coverage due to sudden circumstances and life events the right to continue with their group health plan, it can allow you to retain the same health insurance plan after your divorce. You have the flexibility of 60 days to decide whether you want to continue your coverage under COBRA, but the downside is that it tends to be expensive. Not only will you have to pay the full premium, which includes both your share and your employer’s share, but you will also have to pay an additional fee.

Employer health insurance plan

If you have access to an employer health insurance plan, this could be a great option. This is an insurance plan that is partially subsidized by your employer, helping you save money on the cost of your health insurance. As a result, it could be the most affordable option, but you might only be allowed to join during certain times of the year. That means that you could lose coverage for a while, so you may need to consider other options as well.

Affordable Care Act (ACA) plan

If you want to purchase health insurance on your own, you may want to consider an ACA plan. ACA plans cover 10 essential health benefits, including emergency services, mental health services, laboratory services, and more. Certain states may also offer dental and vision coverage.

Finding an ACA plan entails heading to marketplaces online during the right enrollment period, comparing the options available, and finding the right one to meet your needs. If you are losing health care coverage due to your divorce, you may be eligible for a Special Enrollment Period, which gives you 60 days before or after the event to enroll in an ACA plan.  

You will also want to learn about the different levels available. ACA plans are separated into metallic levels, and they are divided based on the average percentage of your expected medical insurance costs that the plan will cover. For example, a bronze plan should cover 60 percent of your costs on average, a silver plan should cover 70 percent, a gold plan should cover 80 percent, and a platinum plan should cover 90 percent.

These options can be confusing, but eHealth is here to help you. Our helpful licensed insurance agents can assist you in finding a plan that meets your requirements.

Short-term health insurance

You might want to consider short-term health insurance as well. This temporary, limited policy offers fewer benefits and federal protections compared to more comprehensive health insurance options available on HealthCare.gov. It may exclude coverage for preexisting conditions such as diabetes, cancer, stroke, arthritis, heart disease, and mental health and substance use disorders. Additionally, the policy might not cover essential health services including prescription drugs, preventive screenings, maternity care, emergency services, hospitalization, pediatric care, and physical therapy. There is often no cap on what you pay out-of-pocket for care, and you won’t qualify for federal financial assistance to help with premiums and out-of-pocket costs. Furthermore, this type of insurance does not need to meet federal standards for comprehensive health coverage. The benefit is that it is inexpensive, and coverage may kick in the day after you apply. The downside is that it does not offer as many benefits. Furthermore, you might not be able to stay on this plan for very long. Coverage typically lasts between 1 and 3 months with an option to renew for one additional month, however it depends on what state you live in.

Health Insurance Options After Divorce: FAQs

There are several common questions that people have about health insurance and divorce. They include:

How will divorce affect my child’s health insurance?

It’s important to know that your child’s (or children’s) health insurance may not be affected by your divorce. If your ex-spouse has health insurance covering your child, their policy will continue to do so even if you’re divorced. The same goes for their health insurance during separation. If you decide to get family health insurance after the divorce and your ex-spouse also continues to maintain a family plan, your child can be insured under both plans. Learn more about how you can have two health insurance plans.

Can I keep my ex-spouse on my insurance?

Typically, your employer will not allow you to keep your spouse on your health insurance plan after you have gotten divorced. That is because your employer may have to pay extra money to keep your ex-spouse on your health insurance plan. However, COBRA is an option if you wish to continue coverage with your previous plan, giving you 60 days to make a decision.

Will my health insurance plan be affected if I’m separated but not divorced?

If you are separated but not divorced, you should be able to keep your spouse on your health insurance plan. There is no rule against keeping your spouse on your health insurance plan just because you are not living together. Keep in mind that you may receive information about your health insurance plan in the mail, so if you are not living with your spouse, you may need to keep each other updated about information related to your health insurance plan.

You might even be required to undergo a legal separation, or a limited divorce, before you can get a full divorce. If you enter a legal separation, it may have implications for your health insurance plan, so you may want to check with your health insurance provider or your employer for more information.

Is divorce a qualifying life event for a special enrollment period?

Yes, divorce is considered a qualifying life event for a special enrollment period in health insurance. This allows you to make changes to your health insurance plan or enroll in a new plan outside the usual open enrollment period.

Find the right health insurance plan after divorce

If you are confused about any of these health insurance options or your rights after divorce, eHealth is here to help. eHealth can help you compare hundreds of affordable individual and family health insurance plans in your area. You can shop online with our plan comparison tools or call one of our helpful licensed insurance agents who can walk you through any questions or concerns you may have. Be sure you find the right health insurance plan after divorce with eHealth.

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