An important, yet overlooked, aspect of a divorce is how to handle health insurance for both the divorcing spouses and their children. During the divorce process, you will need to make decisions about how you, your spouse and your children will continue to be covered by a health insurance plan. Understanding the options that are available can help make this transition smoother.
Health Insurance for Divorcing Spouses
In many marriages, both spouses are covered under a single health insurance plan, typically provided by one spouse’s employer. During the divorce process, it is common for the spouse providing the insurance to want to drop the other from the plan to reduce costs. However, in Illinois, our courts generally require the status quo to be maintained while the divorce is proceeding. This means that your or your spouse cannot unilaterally remove the other from the insurance plan until your divorce is finalized. If a spouse attempts to do so, a court can issue an order to reinstate the coverage, and employers are required to comply, even when it is outside of the open enrollment period.
Post-Divorce Health Insurance Options
Once the divorce is finalized, you both will typically need to secure your own health insurance. Divorce is considered a qualifying life event, which allows you to enroll in a new plan outside of the standard open enrollment period. If one spouse has access to employer-sponsored health insurance, they can join that plan. Another option is COBRA, a program that allows you to continue your previous employer-sponsored health insurance for up to 36 months. However, COBRA can be expensive, as you will pay the full premium, including the portion previously covered by the employer.
For those without access to employer-sponsored insurance, the marketplace or state-specific options like Shira in Illinois can provide alternative coverage. It’s important to explore all available options to find the most affordable and comprehensive plan.
Health Insurance for Children
When it comes to children, the court will determine which parent should provide health insurance based on the best coverage at the most affordable cost. Insurance companies typically do not favor dual coverage, so it is uncommon for you both to have separate insurance plans for the children. The cost of the insurance premium is divided between the parents according to your respective gross incomes. This will ensure that you are both sharing the financial responsibility for your children’s health care.
Common Surprises
Many people are surprised by the intricacies of managing health insurance during a divorce. You may not realize that divorce is a qualifying life event that allows you to enroll in new health insurance or that you may be required to maintain health insurance for your spouse throughout a lengthy divorce process. Understanding these details in advance can help avoid unexpected complications and ensure that everyone is protected.
Addressing health insurance during a divorce is an important step that requires careful consideration. By understanding your options and the legal requirements, you can ensure that both you and your children have the necessary coverage during and after this significant life change.
The Law Offices of Patrick Markey, P.C., are dedicated to the Collaborative Divorce Process and can help you address and resolve issues in the divorce process.
Our offices are located at 108 Stetson Avenue, Suite 3500 in Chicago, Illinois. You may call us at 312-223-1764.