by Guest » Wed Feb 06, 2013 11:22 am
I have just filed for my divorce, but I guess it would take some time. However, I have coverage through my husband's health plan at work. Will the insurer drop me from the plan as soon we get the divorce or will wait till the next renewal? What should be done in this case?
Posted: Wed Feb 06, 2013 08:28 pm Post Subject:
Once the divorce is final, there is no requirement to keep you on the plan. This is considered a "qualifying event" under COBRA legislation and you will qualify for continuation of coverage under COBRA as a divorced spouse, if your husband's employer has at least 20 employees. If you have any children, they are normally eligible as well under the same conditions.
If it's available, you will be allowed to continue your group coverage under COBRA for 36 months after the coverage in the group plan is terminated. You will have to pay the entire group insurance premium plus up to 2% additional as a "COBRA administrative fee." The resultant premium is 102% of whatever the group rate was at the time of the divorce.
If COBRA is not available to you due to less than 20 employees or another reason that would not make COBRA available to you, most states have contingency plans for this that would allow you to maintain some sort of insurance coverage.
InsTeacher 8)
Posted: Thu Feb 07, 2013 06:14 pm Post Subject:
Ins Teacher is correct in all respects with the information posted above. But he inadvertently omitted a couple of points.
First, if you obtain a "legal separation" from your husband, you trigger a COBRA qualifying event long before the divorce becomes final, and the 36 months of continuation is marked from that point. Although your husband can report the qualifying event, it's really up to you to do so and start COBRA continuation as soon as possible. You contact the employer for the forms to complete.
Second, if the cost of coverage (before or after the divorce) is going to be a problem, your attorney should make a demand for your husband to pay the COBRA continuation premium for your/your children's coverage. Without such a demand, you are on your own -- and I'm sure the cost is several hundred dollars per month.
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