The short answer: If you’re covered under your spouse’s employer health plan, you’ll usually lose that coverage once your South Carolina divorce is final. You can often keep it temporarily through COBRA, typically up to 36 months, or switch to a Marketplace plan. Your children’s coverage usually continues, and your divorce decree or child support order will name who maintains it and how costs are shared.
Losing your health insurance is one of the most stressful parts of divorce, especially if you’ve relied on your spouse’s plan for years. The good news is you have options, and planning ahead helps you avoid a gap in coverage. Here’s what Greenville spouses need to know about health insurance after divorce.
In this article, our Greenville divorce lawyers discuss:
– What happens to your coverage when you divorce.
– How COBRA lets you continue coverage, and what it costs.
– Other coverage options after divorce.
– Who pays for child health insurance after divorce.
– How to address health insurance in your divorce settlement.
What happens to your health insurance when you divorce in South Carolina?
If you’re covered as a dependent under your spouse’s employer plan, you’ll generally lose it once your divorce is finalized. While you’re separated but still legally married, you can usually stay on the plan. Once the family court enters your final decree, you’re no longer a spouse, and most employer plans won’t cover an ex-spouse. That’s why it helps to line up your next option before the divorce is final, so you avoid a gap that exposes you to major medical bills.
How does COBRA let you continue your coverage after divorce?
COBRA lets you stay on your ex-spouse’s group health plan for a limited time after divorce, typically up to 36 months. Divorce is a qualifying event under federal law, and for a qualifying event of this kind, the maximum continuation period runs 36 months from the date of the event under 29 U.S.C. § 1162.
There are a few catches. You or your spouse must notify the plan administrator of the divorce, generally within 60 days, or you can lose the right to elect COBRA. It also typically applies only to private employers with 20 or more employees. And it isn’t cheap. The plan can charge a premium of up to 102% of the applicable premium, so you continue to pay for health insurance after divorce, often at a much higher cost than during your marriage.
Worried about affording coverage after divorce? Call 864-778-2734 to talk through your options.
What other coverage options do you have after a divorce?
A Health Insurance Marketplace plan is often a more affordable long-term option than COBRA. Losing coverage due to divorce is generally treated as a qualifying life event, which can open a special enrollment period so you don’t have to wait until open enrollment.
Other options may include your own employer’s plan, a future spouse’s plan, or Medicaid, depending on your income. The right choice depends on your budget, your health needs, and whether children are on the plan.
Who pays for child health insurance after divorce?
In most South Carolina divorces, one parent is ordered to maintain health insurance for the children, and the divorce decree typically specifies which parent is responsible for the children’s health insurance. A divorce doesn’t automatically terminate a child’s coverage under a parent’s plan, and children can usually remain on one parent’s employer-sponsored plan.
South Carolina’s child support guidelines account for children’s health insurance premiums, so the party responsible for paying them will receive a credit in the support calculation. Parents also typically share the children’s uncovered medical costs, such as co-pays, deductibles, and other out-of-pocket expenses, in pro rata percentages based on the proportional share of combined monthly adjusted gross income.
How should health insurance be handled in your divorce settlement?
Health insurance should be addressed directly in your settlement, not left as an afterthought. A clear agreement spells out who carries coverage for the children, how a spouse will handle COBRA or replacement coverage, and how medical costs are split. Getting this right protects you and your children from surprise bills later.
Our team at Turner Family Law, with an office at 12 E Stone Ave in Greenville, helps clients plan for these details so nothing slips through the cracks. Ready to move forward? Call 864-778-2734 to discuss your options.
Frequently asked questions about health insurance after divorce
Can I stay on my ex-spouse’s health insurance after divorce?
Not as a spouse. Once your divorce is final, you’re no longer eligible as a dependent on your ex-spouse’s employer plan. You can usually continue that coverage temporarily through COBRA, but you’ll pay the premiums yourself.
How long do I have to elect COBRA after a divorce?
You or your spouse generally must notify the plan administrator of the divorce within 60 days. The administrator then has 14 days to send a COBRA election notice, and you have 60 days from the date of that notice to enroll. Don’t wait, because missing these deadlines can cost you the coverage.
Who pays for child health insurance after divorce in South Carolina?
The divorce decree or child support order names the parent responsible for the children’s coverage. South Carolina’s child support guidelines factor the premium cost into the support calculation, and parents usually share out-of-pocket medical costs based on their incomes.
