Health Insurance Considerations in Divorce
Health care is a crucial concern during a divorce, particularly for more senior divorcing spouses. Ensuring a seamless transition from a shared healthcare plan to individual coverage, or even finding new coverage altogether, is crucial to maintaining your well-being during and after divorce proceedings.
If your current health insurance is a group policy provided by your spouse's employer, you'll need to consider individual coverage. You might be eligible for an individual plan through your own employer, or you might have to explore options in the private marketplace. Be sure to compare not only premiums but also out-of-pocket costs and benefits across different plans.
The Affordable Care Act (ACA) has made health insurance more accessible and more affordable for many. It provides for "special enrollment periods" in situations like divorce, allowing you to apply for coverage outside of the regular enrollment period. This is a great way to ensure you don't experience a gap in coverage. Also, be aware that under the ACA, your ex-spouse cannot cancel your coverage without your knowledge; the law requires that you be notified.
COBRA, or the Consolidated Omnibus Budget Reconciliation Act, is another option for maintaining health insurance coverage post-divorce. Under COBRA, you can choose to continue the coverage you had under your spouse's group plan for up to 36 months. However, you'll be responsible for the entire premium, which can be expensive. For military families, a similar coverage continuation option exists under the Defense Enrollment Eligibility Reporting System (DEERS).
If you have pre-existing conditions and worry about securing health insurance coverage, consider state insurance risk pools. These are state-created programs that provide health insurance to residents unable to get coverage due to health problems. They can be a lifeline for those in need.
If you're 65 or older, Medicare is a viable option. It's important to remember that while Medicare provides a certain level of coverage, it doesn't cover everything. You might want to consider Medigap (Medicare Supplement Insurance) for those expenses not covered under Medicare, such as co-payments, co-insurance, and deductibles.
Medicaid is another option if you have limited income and resources. Eligibility varies by state, so you will need to check your state's requirements.
Long-term care insurance is something divorcing seniors should also consider. Divorce can affect your plans for long-term care, especially if you previously planned on relying on your spouse for this care. A long-term care insurance policy can help cover the cost of care in a nursing home or your own home.
Finally, bridging the gap in coverage as a result of divorce is essential. One way to ensure this is by stipulating in your divorce agreement that your spouse will continue to provide health insurance coverage until you secure your own.
Remember, navigating health care and insurance during a divorce can be complex. Consult with a lawyer or a health insurance advisor to ensure you're making the best decisions for your situation.