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Everyone knows divorce is the challenging process that it is. Issues regarding child custody and division of marital assets require a great deal of care on the part of divorcing spouses. Having a plan being diligent and accomplishing your goals is a major component to divorce success. However, there are lesser-known topics that are important. Rather than ignoring those topics it is best to look at them with a keen eye for detail and a plan.
The topic of health insurance after a divorce may not catch your eye at first. Undoubtedly you will need health insurance no matter what your marital status is. Perhaps the leading factor for financial distress in American families relates to health insurance. Not being able to afford the medical care you receive is a direct result of not having health insurance. As a result, you need to be able to develop a plan geared towards success regarding Post-divorce health insurance coverage.
Divorce is a time of transition
When it comes to the issues existing within a divorce case, perhaps the most notable is that divorce marks a time of transition in your life. You and your spouse are creating a circumstance where there is a great deal of uncertainty about what your family must confront. This is not to say that your family will not be up for the challenge of creating favorable outcomes for yourselves. What it does mean is that this is a situation where your family must be goal-oriented. Assuming that you all will be able to manage the challenges of a divorce is not a good strategy. Rather, you all need to be able to focus your attention on issues like health insurance options.
Fortunately for you, there are several options to consider as you go through your post-divorce planning. This means that no matter what your situation is you can adequately prepare for your life after a divorce. Planning for health insurance considerations is just one area where you need to act intentionally. In other words, do not wander into your post-divorce life. Have a plan geared towards your success in that of your children.
The Law Office of Bryan Fagan would like to take this opportunity to share with you some of these options that you may be interested in exploring. Factors like your specific medical needs, your income, and your employment status will all factor into this analysis. If you have any questions about the material available in today’s blog post, please do not hesitate to reach out to the Law Office of Bryan Fagan. We offer free-of-charge consultations six days per week.
How does divorce impact shared health insurance?
Any health insurance plan through your spouse which also covers you we’ll find that your coverage has dropped immediately after the divorce. You can stay covered under that plan for the duration of the divorce. However, once the divorce is officially over with then you would need to start planning. It is not a matter of if but when it pertains to health insurance coverage being dropped by your spouse’s employer. However, the same is not true of your children.
In all likelihood, your children can remain on a health insurance plan through your spouse’s employer. Make sure that this is a topic that is discussed with your spouse before the end of your divorce. The last thing you want to encounter are gaps in coverage. This can lead to some less than desirable situations involving medical bills, and the financial fallout related to those bills.
Divorce as a qualifying life event
Divorce counts as a qualifying life event as it pertains to health insurance. This means that you could be eligible to buy health insurance in a special enrollment. After your divorce is officially over. From there, you would have up to 60 days to look for and enroll in a different health insurance plan. For example, if your work makes available health insurance to its employees then you may be able to seek enrollment immediately after your divorce. Otherwise, you would need to wait for an open enrollment.
Negotiating on health insurance in the divorce
One of the great misnomers of a divorce case is that judges are not predestined to make all decisions for you and your spouse. Rather, the two of you are given ample opportunity to negotiate a settlement to your case. There is a wide range of topics on which you and your spouse will negotiate during your divorce. A question that the attorneys with the Law Office of Bryan Fagan are asked relates to negotiating health insurance during the divorce. Specifically, whether health insurance may be an item that is included in the divorce settlement.
Health insurance is a topic that you can choose to include in your divorce settlement. Your spouse and you are already responsible for providing your children with health insurance. You may also choose to include a provision in your divorce decree that requires your spouse to pay for your health insurance premiums. Bear in mind that you and your children are not treated as a package deal. This means that you would need to negotiate for your health insurance coverage.
Finding the best plan for your needs after a divorce
Again, keep in mind the special enrollment period once your divorce is over. This special enrollment period allows you to look around for different health insurance plans up to 60 days after your divorce. The state of Texas has health insurance plans that hopefully suit your budget available in our marketplace.
It is also possible that you may be able to simply stay on your insurance after the divorce comes to an end. No matter what your specific position is there are options for you to pursue. Do not assume that having to look for different health insurance options will be a painful process for you and your family. Rather, you may be able to find a plan that better suits your family. It is also worth remembering that your child would be covered under any previous plan. A family court judge will ensure that health insurance is provided for your children before the completion of your divorce.
COBRA
One option to consider for health insurance after your divorce is COBRA. COBRA is available to individuals who lose their health insurance due to an event like divorce or the passing of a spouse. You may have been on a COBRA plan before if you have lost your job and still needed health insurance coverage. Like with the special enrollment period, you have up to 60 days after the divorce to decide about whether you want to continue your health insurance coverage through COBRA.
The main factor that prevents many people from taking advantage of COBRA is the cost. The full premium under your former health insurance will be due in addition to other fees. The out-of-pocket expenses may be even more than what you were planning on considering that an employee and employer’s portion of the fee must be paid. However, with no other options available then COBRA maybe something for you to consider.
Health insurance through an employer
Employer-provided health insurance is the main way for Americans to have coverage. Keep in mind that your employer likely pays a portion of the health insurance premium. As a result, you may not be fully aware of the costs associated with maintaining coverage of this type. However, if your employer can pay for a portion of the plan this may be the most cost-effective method for you to choose. The special enrollment period Is an attractive option. Otherwise, you would need to lose coverage and then wait for another opportunity to enroll in an employer-subsidized plan.
The Affordable Care Act
If none of the options are attractive or available then finding insurance through the Affordable Care Act may be an option. Affordable Care Act plans provide a wide range of services. Mental health, blood work, and laboratory as well as emergency services are available through these plans. You can inquire with the state of Texas as to whether dental or vision plans are also available.
The health insurance marketplaces are found online. Before the end of your divorce be sure to perform enough research into when the sign-up periods are. Depending upon the plan there may be different situations that require you to sign up either immediately after or with a small break after your divorce. The different plans will have different attributes which impact you in different ways. If you have special health needs or concerns, then those will need to be addressed when you are selecting a plan.
One feature of Affordable Care Act plans that you may not be aware of is that each plan differs in terms of coverage and overall cost to you. The bronze-level plan covers approximately 60% of your costs. Next, a silver plan covers 70% of health care costs. Finally, gold and platinum plans cover approximately 80 and 90% of costs, respectively. Importantly, consider your options and perform A basic amount of research so that you are as prepared as possible regarding this important decision.
Are there short-term health insurance options available?
If you expect to undergo additional life changes after a divorce, then shorter-term health insurance policies are available. These are temporary plans that offer limited benefits and protections compared to the plans. For example, preexisting conditions are oftentimes not covered by short-term health insurance. Examples of these preexisting conditions are diabetes, heart disease, and cancer. Maternity care and prescription drugs may also not be covered. Check with the individual short-term health insurance plan before deciding to purchase one. Importantly, pediatric care may not be covered under a specific short-term health insurance plan.
If you are asking yourself what the benefit of a short-term health insurance plan would be it is a reduced cost. Short-term health insurance options are usually less expensive than more comprehensive plans. However, we have already mentioned several drawbacks that come with these short-term health insurance plans. Additionally, there are usually no caps on what a person would pay out of pocket for care. For this reason, you need to be especially sure that you are confident in the plan you are choosing.
However, if you believe that you need to stay on a temporary plan immediately after a divorce then a short-term option may be best for you. Again, consider your options and determine whether a short-term plan may work best for your family. If cost and enrollment periods are factors, then the short-term health insurance option may be best.
Will divorce impact your child’s health insurance coverage?
It is possible that your child’s health insurance coverage will not be impacted by the divorce. Your spouse cannot remove your children from his or her employer-provided health insurance. The same goes for you. Both of you must keep the children on your health insurance plans or decide to change providers. In any event, a family court judge will ensure that your child has some sort of health insurance coverage at the end of the divorce. If not, then you and your spouse will remain married until the subject of health insurance can be determined. Additionally, you should research whether dual coverage under a plan provided by you and your spouse is possible.
Is it possible to keep your ex-spouse on your insurance?
For the most part, employer-provided plans do not allow ex-spouses to remain covered under a policy. This is usually because policies require an employer or provider to pay extra sums of money to do so. As mentioned earlier, COBRA Is an option for those of you who would like to continue your existing coverage after the divorce. Again, you would have up to 60 days after the divorce is finalized to decide on coverage under COBRA.
What is the status of health insurance during a separation?
There is no impact on your health insurance coverage during a separation. First, Texas does not have legal separation as a law. Additionally, you and your spouse cannot remove the other person from your insurance plan during a divorce. The insurance plan does not check with either of you to verify that you are living together. You could be living apart and still maintain your spouse on your plan. There will likely be a temporary order that prohibits either of you from removing anyone from your health insurance plan during the divorce. Talk with your attorney about your situation regarding a separation. You may find that your approach to the divorce changes as a result.
Final thoughts on health insurance within a divorce
The divorce may be an intimidating time for you and your family, but it does not need to be something that catches you off guard. There are certain elements in your case that you need to account for. Health insurance is just one of those circumstances that you need to have a plan regarding. As you have seen through this blog post there are different options available for you when it comes to health insurance after a divorce. The main thing for you is to have a plan. The more well-defined a plan you have the clearer cut your goals will be.
Begin by assessing your financial and health circumstances. In large measure, your finances will determine the number of options you have to choose from. Those who have higher incomes may have more options than those whose income is lower. However, even low-income individuals going through a divorce have options when it comes to health insurance. You may even be able to talk to your current health insurance provider to learn about options after the divorce.
Finally, your children will be accounted for after a divorce. This is a reasonable concern for parents to have. Many families worry that their children will lose coverage after a divorce. Whether it be through an employer-provided plan, marketplace plan, or even Medicaid there are options to account for with your children. Again, having a plan and a knowledge of your family’s health circumstances is key to ensuring there are no lapses in coverage for your family.
Having an experienced family law attorney allows you to develop a better-constructed plan for your case. Contact the Law Office of Bryan Fagan to speak with us about your situation today.
Questions about the material contained in today’s blog post? Contact the Law Office of Bryan Fagan
The attorneys with the Law Office of Bryan Fagan offer free of charge consultations six days a week in person, over the phone, and via video. These consultations are a great way for you to learn more about the world of Texas family law. Before signing a document or negotiating on a subject you do not know well, contact our office. We look forward to the opportunity of serving you during an important part of your life. The Law Office of Bryan Fagan is on your side.
