Health Insurance Hassles During Annual Enrollment: How Does Divorce Impact Health Insurance?

Almost everyone you know has a story about dealing with health insurance companies, whether it be issues about premiums, dates of coverage or prior authorizations. Figuring out which health insurance plan to pick can be a headache, but what happens when you add in the complexity of going through a divorce or supporting employees as they navigate difficult times?

As we enter the time of year for open enrollment for health insurance, here are some things to consider when it comes to health insurance issues and their overlap with family law. Please know you should speak with your human resources provider, the health insurance provider themselves or a health insurance broker for answers regarding your specific health insurance options and your health insurance plan.

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As parties begin the divorce process, a fear a party often has is whether their spouse can remove them from a health insurance plan while the case is pending. Rest assured, as the statutes in Colorado should protect you from such actions. C.R.S. § 14-10-107, which goes into place upon the filing of a petition for dissolution of marriage (divorce) or legal separation proceeding explicitly restrains both parties, without at least a fourteen days’ advance notification and the written consent of the other party or an order of the court, from canceling, modifying, terminating or allowing to lapse for non-payment of premiums any health insurance policy.

This information is provided on every Petition for Dissolution of Marriage and is a clear requirement that the parties maintain the status quo, especially as it relates to health insurance. If you find out your insurance was terminated by your spouse during the divorce process, it is critical that you share this information with your attorney, or to speak with a family law attorney about your options — including possibly requesting relief from the court to rectify the loss of coverage.

Generally, your health insurance policy will be retained through the end of the dissolution of marriage action until the issuance of your divorce decree. Different health insurance plans have contractual terms that dictate the day your insurance will expire: Some insurers state that the insurance terminates the day after the issuance of the decree, the day of the issuance of the decree or the last day of the month in which your decree is entered.

Talk to your human resources provider or your health insurer about the terms of your specific policy as to when your coverage will end. Most health insurance policies are very nuanced and can change from company to company as well as between different insurance carriers. 

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Sometimes, parties, for religious reasons or for health insurance purposes, will remain “married” but will utilize a legal separation to maintain their health insurance benefits with their spouse. If this is something you wish to pursue, you should speak to a family law lawyer about the options available to you and the pros and cons of obtaining a legal separation.

Generally, when parties receive their divorce decree, COBRA would be offered to any family member who lost their health insurance because of the divorce with the ability to maintain group health insurance coverage for a limited period, with a party paying the premium for coverage during that time. Recognize, as you decide whether to utilize COBRA benefits, that the premium may be higher than you remembered as it is likely no longer subsidized by the employer of your former spouse.

Alternatively, suppose you or your spouse work or work for a small business (between 2 and 19 employees) who have been continuously covered under the employer plan for six consecutive months. In that case, you might be offered Colorado Continuation and Conversion coverage for a period of up to 18 months, which you can learn more about by speaking with your human resources provider.

If you believe you may not be able to afford to pay for COBRA coverage after a divorce, another option that is available to you is plans through Connect for Health Colorado, the health insurance marketplace created in accordance to the Patient Protection and Affordable Care Act (colloquially known as “Obamacare”).

While almost everyone is eligible to purchase a plan on the marketplace during annual enrollment between November 1^st through January 15^th, being a party to a divorce is a “Qualifying Life Event” that allows you to obtain insurance through a special enrollment period.

Applying through Connect for Health Colorado can often be helpful to parties who are struggling financially, as there are federal subsidies that are often available. If you believe a plan from the marketplace is what you need post-decree, it is encouraged that you submit your application well in advance of the decree date to ensure there are no lapses in coverage.

While we are not health insurance brokers, family law attorneys are regularly exposed to the challenges families face with maintaining and continuing health insurance coverage for themselves and their family members after the divorce process is complete.

Should you have questions, you are strongly encouraged to speak with your human resources provider, the human resources provider of your spouse (if applicable), and a health insurance broker about your options, in addition to a family law attorney, as you move through a divorce and have questions about your health insurance. 

This article is sponsored content.

Anthony J. Zarsky is a Senior Attorney at Griffiths Law. Anthony’s practice focuses on complex financial divorces, parental responsibilities including substance abuse issues, protection orders, cohabitation agreements, and zealous advocacy for his clients.