Divorce brings many challenges, and one critical issue that can often be overlooked is medical insurance. Different states have varying laws about health coverage for a spouse who does not carry insurance for the family. Connecticut’s laws are on the more restrictive side, so it’s important to understand how medical insurance works during and after a divorce.
What Happens to Medical Insurance After Divorce?
In Connecticut, medical insurance coverage for the non-subscribing spouse ends on the date of divorce. Some employers may extend coverage until the end of that month, but this is rare. Fortunately, divorcing spouses can opt for COBRA coverage for up to three years from the date of divorce.
COBRA, short for the Consolidated Omnibus Budget Reconciliation Act of 1985, allows individuals and their dependents to continue employer-sponsored health insurance temporarily when that coverage would otherwise end due to changes like job loss or divorce.
Understanding COBRA Coverage in Connecticut
In cases of divorce, COBRA coverage can last up to three years, while for job loss, it only lasts for 18 months. While three years might seem like a long time, it can go by quickly, especially when you’re recovering from a divorce, re-entering the job market, or adjusting to new financial circumstances. One of the biggest drawbacks to COBRA is its high cost. It can be significantly more expensive than finding a new policy independently, though the decision depends on weighing your options.
In many cases, current health plans through COBRA might offer better terms, such as lower deductibles, lower co-pays, and a larger provider network, compared to a new policy. However, the cost of COBRA might not justify these advantages, so careful comparison is necessary.
When COBRA is Essential
For some divorcing spouses, COBRA is critical. If you’re undergoing intensive medical treatment or if your health depends on coverage provided through COBRA, paying for the extended coverage could be worth the cost, despite the three-year limit. There’s always hope that during this time, healthcare policies could change, or new programs could become available to extend coverage.
Can My Spouse Be Required to Pay for My Medical Insurance?
This depends on several factors, including the cost of COBRA, the need for specific coverage, each spouse’s financial situation, and the availability of new insurance. Connecticut courts consider these elements when deciding whether one spouse should cover health insurance costs as part of a divorce settlement.
The Role of the Affordable Care Act (ACA)
The Affordable Care Act (ACA), often referred to as Obamacare, brought significant improvements for divorcing couples, particularly those with pre-existing conditions like cancer, high blood pressure, or diabetes. Before the ACA, medical insurers could deny coverage for these conditions, making it difficult for some people to leave their marriages if they relied on their spouse’s insurance.
With the ACA, pre-existing conditions are covered, and insurance through the ACA is often more affordable than COBRA, especially for those with lower incomes. The ACA premiums in Connecticut are income-based, and there are various plans to choose from—ranging from Bronze to Platinum.
Connecticut’s Husky Insurance Program
For those with lower incomes, Connecticut’s Husky program offers another option. Husky is the state’s income-based health insurance program, and there are four categories:
- Husky A: For children, parents, relative caregivers, and pregnant women based on family income.
- Husky B: For uninsured children under age 19 from higher-income households. Some cost-sharing may apply.
- Husky C: For residents age 65 and older or those who are disabled or blind.
- Husky D: For low-income adults without dependent children.
Both Obamacare and Husky are administered by Access Health Connecticut. For more information about eligibility, you can contact them at 203-541-3975.
Plan Ahead for Your Health and Wealth
As the saying goes, “When you have your health, you have your wealth.” Good medical insurance is crucial to maintaining your well-being, especially during significant life changes like divorce. Make sure to consider this important aspect carefully and seek experienced legal guidance to ensure that your health insurance needs are addressed as part of your divorce settlement.