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How A Divorce Affects Health Insurance Coverage

by | Sep 22, 2024 | Health Insurance

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Page Tags: 2024 | coverage

Does Getting a Divorce Trigger a Special Enrollment Period?

Going through a divorce can be a very stressful time, and it is unlikely that your health insurance coverage is at the forefront of your mind throughout the proceedings. However, if your current health insurance policy is not in your name and health insurance coverage is not included in the settlement, then the health insurance company will drop you from the policy as soon as the divorce is finalized.

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How A Divorce Affects Health Insurance

It is the member’s responsibility to inform the insurance company of the divorce. The bad news is, that a divorce by itself is not a “special enrollment period”, but, if you LOSE coverage because of the divorce, you’ll have 60 days to take action. So, act right away.

To avoid being surprised by high medical bills, it is a good idea to consider your health insurance options before losing your coverage. If you are finding yourself without health insurance due to a recent divorce, you will be able to sign up for a new plan without waiting for the Open Enrollment Period provided you did lose the coverage because of the divorce.

This period is called a “Special Enrollment Period”. You’ll have 60 days from the date of the loss of your coverage to enroll into a new plan. But act quickly, because once this 60 days is over, you will have to wait until the annual open enrollment period which in Nevada is November through January 15th. It’s best to call as soon as you know your insurance will be ending.

Getting Health Insurance After a Divorce

There are several options for obtaining new health insurance after going through a divorce. There are many factors to consider, however. Your or your ex’s employer’s benefits, your age – if you are under 26 and on your parents’ insurance coverage, your income/financial situation, if you have dependents on your tax return, and many other considerations. A health insurance agent can help you weigh your options to come up with the best solution for you. Make sure you tell your agent you want a “Qualified Health Plan”. This is very important.

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COBRA

If your health insurance is through your former spouse’s employer, COBRA provides you with a way to keep your current coverage. After the divorce, you have 60 days to determine whether you want to keep your coverage, and you are allowed to keep your health insurance plan through COBRA for up to 18 months. It’s really important to speak with an agent before electing Cobra. You may be eligible for a Government “Subsidy” to help you pay your health insurance premiums depending on your income and circumstances, however, if you elect the Cobra, you will not be eligible for a subsidy until it’s “Open Enrollment” (November 1st through January 15th each year).

Cobra coverage is usually very good; however, the downside is that COBRA tends to be the most expensive option. Not only do you pay your monthly premium, but you also pay the employer’s portion of the premium they used to pay, and possibly a small fee too.

Health Insurance Through Your Employer

If your employer provides health insurance, this is typically the most cost-effective option, because if you are offered coverage through your employer, you are most likely NOT eligible for a government subsidy. It is very important you understand this.

Like private health insurance plans, you can sign up for employer-based health insurance during the enrollment period that opens up after the divorce. Talk to your Human Resources department as soon as possible to avoid missing your opportunity to make changes to avoid losing your chance to get insurance through your employer if it’s offered.​

If it has been a long time since you have had to shop for health insurance coverage, the process can feel daunting. At Nevada Insurance Enrollment, our health insurance agents guide you through the entire process, from finding the right health insurance plan for your needs and budget to signing up for coverage and understanding the claims process.

Stating Your Income For Health Insurance Subsidy

Stating Your Income For Health Insurance Subsidy

When you claim you make a certain amount of money in a year (and receive a subsidy), you must try to be as accurate as possible and notify them of any changes that may occur throughout the year. Be honest in stating your income. There are very serious consequences to playing games with your income.

Can You File for Medical Bankruptcy?

Can You File for Medical Bankruptcy?

The short answer is yes; medical debt is considered non-priority unsecured debt and can be discharged in bankruptcy. While you cannot target medical debt in bankruptcy, this process can help lower payments or eliminate the debt altogether.

 

By page visits (this month)

#1) Health Insurance Subsidy Chart

#2) Health Insurance

#3) Health Insurance WITH a Subsidy

#4) Insurance Blog

#5) Request a Quote

By page visits (this month)

 

#1) Health Insurance Subsidy Chart

#2) Health Insurance

#3) Health Insurance WITH a Subsidy

#4) Insurance Blog Posts

#5) Request a Quote

Stating Your Income For Health Insurance Subsidy

When you claim you make a certain amount of money in a year (and receive a subsidy), you must try to be as accurate as possible and notify them of any changes that may occur throughout the year. Be honest in stating your income. There are very serious consequences to playing games with your income.

Can You File for Medical Bankruptcy?

The short answer is yes; medical debt is considered non-priority unsecured debt and can be discharged in bankruptcy. While you cannot target medical debt in bankruptcy, this process can help lower payments or eliminate the debt altogether.

Get The Most From Your Health Insurance Plan

Today’s Health Insurance plans may offer benefits above and beyond just doctors and hospitals, such as free preventive services, fitness programs, teledoc/telehealth, and so much more!

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