COBRA paperwork on someone's desk.

COBRA Coverage After Divorce

Going through a divorce is often an emotional and overwhelming time. There are so many issues that need to be addressed. The resolution of these issues has a critical impact on your financial and personal future. When there are this many issues to address and considerations to be made, things can get lost in the shuffle. For instance, have you thought about what to do about health insurance after divorce? Depending on your situation, COBRA coverage may be a good option to consider. 

How Does a Divorce Impact Your COBRA Coverage

The Consolidated Omnibus Budget Reconciliation Act (COBRA) is a federal program that requires your soon-to-be former spouse’s employer to provide you with temporary insurance after your divorce. If you get health insurance through your spouse’s employer, this can be valuable to utilize until you can find coverage for yourself on a more permanent basis. To qualify for COBRA, the group health plan must meet specific requirements in order to provide for coverage. For instance, the employer must employ more than 20 people. Additionally, there must be a qualifying event to trigger COBRA coverage. Divorce is one such qualifying event. Also, you must be a qualified beneficiary for the event. This means that you must be an individual covered by the group health plan on the day your divorce is finalized. You must also inform the administrator of the health insurance plan within 60 days of your divorce that you wish to receive COBRA coverage.

COBRA is not, however, without its limitations. First, it is only temporary and lasts no more than 36 months. You will also lose COBRA coverage should you remarry or enroll in a new health insurance plan. COBRA coverage can be expensive. You will be responsible for paying the monthly premiums yourself, with no contribution from the employer. Prior to your divorce being finalized, make sure you figure out what that monthly premium would look like to make sure it is something you can afford.

Should you have other insurance options available, such as through your own employer, these might be worth looking into as a better option to COBRA coverage. In addition to being expensive, the temporary nature of COBRA coverage can be cause for concern. Should you develop a medical condition while on COBRA, you may have difficulty when you look for a new insurance plan. A new insurance plan may look at that as a pre-existing condition resulting in a denial of coverage or higher insurance premiums. Should you wish to go through your own employer for insurance coverage, you will still be able to enroll even if it is outside the annual open enrollment period as divorce is considered a major life-changing allowing for enrollment at any point in time.

Florida Family Law Attorneys

When you are in the midst of a divorce, it can be easy to overlook things as there are so many different things to consider. Let the trusted divorce attorneys at Orlando Family Team relieve you of this heavy burden to carry. We will always look out for your best interests in all things relating to your divorce and your post-divorce life. Contact us today.