Health Insurance Coverage For Legal Separation and Divorce in WI

5 Health Insurance Options for Post-Divorce or Legal Separation

1. Employer-Sponsored Insurance

   Legal Separation: If you and your spouse are legally separated, the dependent spouse may continue to receive health insurance benefits from the insured spouse’s employer. Promptly check with your insurance provider and read the details of your coverage thoroughly to determine if coverage will remain or be terminated for the dependent spouse.

   Divorce: If you and your spouse are legally divorced, the dependent spouse will no longer be eligible for health insurance benefits under the insured spouse’s healthcare plan. The section below provides further information on how the dependent spouse may temporarily continue with their spouse’s employer-sponsored health insurance under COBRA.

2. Consolidated Omnibus Budget Reconciliation Act (COBRA)

   The Consolidated Omnibus Budget Reconciliation Act (COBRA) provides dependents facing insurance loss due to legal divorce with the option to continue health insurance coverage on the insured spouse’s plan for up to 36 months after the divorce at the expense of the dependent.

   COBRA is:

   • Temporary
     • Continuation of coverage can only be elected for up to 36 months
   • Expensive
     • The dependent is responsible for premiums and for coverage of up to 102% of the cost of the plan.

   You or your spouse must inform your insurance plan administrator and request coverage information within 60 days of your legal separation or divorce. The covering employer has up to 45 days to send a COBRA election notice and plan information. If you opt for coverage under COBRA, be prepared for high healthcare costs and out-of-pocket expenses. Note that COBRA applies to employers with more than 20 employees and does not apply to churches, certain tax-exempt religious organizations, and some federal government employees.

3. Income-based coverage through the ACA Marketplace (ObamaCare)

   The Affordable Care Act or “Obamacare” provides access to federally-regulated, tier-based subsidized health insurance plans through a centralized hub called the Marketplace. There is an open enrollment period for Obamacare, however, a divorce is a qualifying life event that typically makes persons eligible to enroll during a special enrollment period. Your income, geographical location, and other factors may impact your eligibility for coverage and various plan pricing.

4. Private insurance coverage

   If you do not want to continue coverage through COBRA or apply for insurance through the Marketplace (Obamacare/Affordable Care Act), you may have the option of purchasing a private health insurance plan online or through an insurance broker.

5. Medicaid

   In the case of a divorce, you or your spouse may qualify for health insurance coverage through Medicaid. Medicaid is a state and federal-funded health insurance program that covers low-income persons and seniors.

   Other health insurance opportunities such as short-term coverage or healthcare ministries may be options for you or your spouse as well. Health insurance can be complicated and cumbersome, particularly when there are children involved. It’s important to make sure you are covered. Contact us with questions- we are here to help.