The breakup of families is very common in the United States with 40 to 50% of marriages ending in divorce. Of course, this has serious economic impacts on the individuals involved. One such area is health insurance, the coverage of which can be significantly altered by a divorce. With so many other important factors involve, this may be the last one you consider, but when you do, you'll realize that it is one of the most significant. Here are three things you should know about how divorce affects your family's health insurance.
Your Coverage May Go Through Drastic Changes
If you divorce and your health insurance was provided by your spouse's employer, changes in the coverage will probably ensue. In this scenario, it is entirely possible that you will lose your health insurance when you also lose your status as a qualified dependent. Once that happens, you must find your own or pay for COBRA Insurance, which can cover you and the rest of your family for up to 36 months, though often at increased premiums. Investigate your health insurance options. Potential alternatives include checking what your own employer offers or signing up for the Affordable Care Act.
Your Kids Should Still Be Covered
One of the most important things in a divorce that involves children is to work out which spouse will pay to ensure that those children have health insurance. This decision will be based on various of factors, including which spouse can purchase the most comprehensive coverage and what the cost of the coverage may be.
It's also important to keep in mind that the spouse who covers health insurance may have child support payments altered in compensation. According to Laurence J Brock, child support payments are calculated based on several factors, including health insurance costs. As such, payment of health insurance often lowers child support payments.
Your Coverage Might Not Change
There are numerous scenarios under which your health insurance may not change. The first is the most obvious, the one in which you are the person who obtained the coverage in the first place. Indeed, in this scenario, your costs may actually drop when you remove your spouse. Some states, however, allow a person to keep an ex-spouse on a health insurance plan. In certain cases, it might even be required.
Divorce leads to myriad changes in life, and one of the most important could be health insurance coverage. Before a divorce, you should make sure that you know your options and how the legal severance may impact your life. Talk with professionals and make sure your decisions are informed.
If you are worried about your coverage, let us give you some peace of mind!