The Impact of Divorce on Your Health Insurance Coverage

 Posted on October 17, 2024 in Divorce Finances

In 2023, about seven percent of the American population had no health insurance coverage. Employment-based health insurance coverage continued to be the largest source of health insurance, with about 164 million Americans receiving their health insurance through their employer. Another 23 million Americans received health insurance through Marketplace, 92 million from Medicaid and CHIP, and about 60 million from Medicare.

Married couples are often covered under the same health insurance plan, usually through one spouse’s employer. The spouse whose employer provides the health insurance is known as the "policyholder" or "primary enrollee." The other spouse is the "family member" or "dependent." Even when both spouses work, there may be significant differences between the health insurance their respective employers provide, so they often enroll in the health insurance with the best benefits. While this may work out well while the couple is married, what happens in the event of a divorce?

Thanks to the ever-increasing costs of healthcare, health insurance is considered the most important work benefit for most Americans.  If you are the "dependent" or "family member" on your spouse’s health insurance – especially if you have one or more significant health challenges – it can be stressful to wonder what you will do for health insurance after the divorce. If you find yourself in a similar situation, speaking to an experienced Yorkville, IL divorce attorney from The Law Office of Matthew M. Williams, P.C. can be extremely beneficial.  

What are Your Options for Health Insurance Coverage if You Are on Your Spouse’s Insurance Plan?

If you are the dependent or family member, you can possibly remain covered under your spouse’s health insurance plan during the divorce. Once your divorce is final, you are no longer considered a family member, so you will no longer be covered unless you qualify under the Illinois Spousal Continuation Coverage Law. This could allow you to remain under your spouse’s health insurance plan – for an additional cost.

To be eligible under this law, your spouse must notify his or her employer within 30 days of the final divorce decree. Only certain plans are eligible under this law, and there can be time limits for the duration of the health insurance coverage.  If your workplace offers health insurance, this would likely be your first choice since employers are usually required to cover at least half of the cost of the monthly premiums.

If you are a lower-earning spouse, the court might order a higher spousal support amount to help you maintain health insurance. Depending on your income, you might also be eligible for Marketplace (Affordable Care Act) insurance. COBRA (Consolidated Omnibus Budget Reconciliation Act) is another option that allows workers and family members to access group health benefits for a limited time following job loss or divorce. Unfortunately, COBRA coverage often costs considerably more than group health insurance because the individual is responsible for the full cost of the premium.

What If My Spouse Removes Me from His or Her Health Insurance Plan During the Divorce?

The policyholder spouse is only allowed to make changes during open enrollment or within 30 days of a "qualifying event." While divorce is a qualifying event, filing for divorce is generally not. If your spouse removes you from his or her health insurance plan during the divorce, your attorney can file an emergency motion to request that your coverage be reinstated. A judge is not likely to look favorably upon a spouse who removes the other spouse from a health insurance plan during the divorce.  

Contact a Kendall County, IL Divorce Attorney

Health insurance coverage can cause you considerable anxiety during your divorce. During his many years of family law experience, attorney Matthew M. Williams has built a strong reputation as an advocate who personally tailors representation to each client’s specific needs.

With a degree in psychology in addition to his law degree and training in collaborative and cooperative law, Mr. Williams is ready to get you through this difficult time in the best way possible. Choosing an Oswego, IL divorce attorney from The Law Office of Matthew M. Williams, P.C. is a great first step in the divorce process. Call 630-409-8184 to schedule a consultation.