When getting a divorce, its is important to sort out health insurance for yourself and your children. Regardless of being on a group or individual plan, if you happen to be a dependent on your former spouse’s benefits, you need to take different measures, as it will no longer apply. Here is a guide for how to handle the weight of divorce with each type of coverage:
Individual Health Insurance
Upon finalizing a divorce, you must notify your insurance company and terminate the existing benefits plan. Both parties must enroll for new, separate health insurance plans either under the same insurer or choose a new company.
Group Health Insurance
The policy-holder needs to inform his or her employer of the changes made so that the plan can be revised. This can usually be done with a change-of-policy form through the employer, then given to the insurance company to finalize the changes.
Upon receiving the notification of changes, the employer is required to provide the family with information on their COBRA rights. If covered under COBRA, the spouse being removed from the plan is able to purchase 36 months of medical coverage through their former spouse’s insurance policy. Since the benefits only last 36 months, the spouse on the temporary COBRA plan should use that time period to find an individual health insurance plan to secure themselves in the future.
Children’s Health Insurance
Making sure your children are covered under a health insurance policy is essential, and usually they will able to receive benefits by staying on a group plan, or if you have an individual plan, you must decide whose plan will cover the children as dependents. Unless neither of you has a group plan, try to avoid claiming the children as dependents on your individual plan It tends to be unnecessarily expensive.
HMO plans under employers are restricted to local coverage for the most part, which will cause problems if the affected spouse and children move to another area.
If you have any questions about getting an individual health plan, or to take action and get a quote now, call 888-803-5917.