Understanding How Divorce Impacts Health Insurance in California: Essential Insights 

Understanding how divorce impacts health insurance in California is crucial to avoid coverage gaps and penalties for not having health insurance. However, it often goes overlooked when dealing with the legal complexities associated with the divorce process. 

Even the most cordial divorce is a major life event. Marriage binds a couple’s legal and financial life, and divorce requires the reversal of these bonds. Partners are faced with decisions regarding custody of children, equal distribution of assets, and who will retain the family home.  

While health insurance is often affected by divorce, it’s a detail easily overlooked until coverage becomes a concern. Many people don’t realize they may lose coverage through a spouse and need to take action after divorce to get health insurance in California. 

The Intersection of Divorce and Health Insurance  

Employees who are offered affordable health insurance that meets California’s minimum requirements by their employer aren’t eligible for financial help to lower the cost of a Covered California plan. This is why many families turn to employer-sponsored plans for health insurance.  

However, an employee’s options for securing an ex-spouse’s health coverage after divorce in California change dramatically. Knowing how divorce impacts health insurance in California can help divorces settle more amicably and ensure everyone has access to coverage after the matter is closed. 

While many employers offer health benefits that include spousal coverage, the coverage is terminated upon a finalized divorce. Since going uninsured for more than three consecutive months can lead to costly fines, an uninsured spouse needs to consider immediate options to secure health insurance after divorce in California.  

Initial Steps to Address Health Insurance During Divorce 

If you’re dependent on your spouse’s employer for health insurance coverage, you’ll want to have a new plan set up before you lose coverage. These steps can ensure the process goes smoothly.  

• Discuss health insurance during the divorce negotiations. If you’ve been a stay-at-home parent, you may want to negotiate for terms that ensure your spouse will continue paying for your insurance for a specific number of months or years. 

• Decide whose plan will cover the kids. Children can usually stay on an existing plan following divorce. This is often a good idea, since it allows children to continue the same coverage and see the same doctors. 

• Explore your options for health insurance before the divorce is finalized. Gather information about where you can get health insurance and compare costs, special enrollment periods, and coverage options to make an informed choice. 

Health Insurance Options After Divorce 

In California, residents are required to have health coverage that meets the state’s minimum essential coverage requirements. If your health insurance ends after your divorce, you have several options to avoid coverage gaps. 

California health insurance options after divorce may include: 

Assessing COBRA and Its Viability for Divorced Individuals 

COBRA insurance after a California divorce allows you to stay on your ex-spouse’s employer-sponsored coverage for up to 36 months.  

This option will allow you to continue the same coverage with the doctors you’re used to. However, it can be prohibitively expensive since you won’t be eligible for employer contributions. You have up to 60 days to enroll in COBRA after your divorce is finalized. 

Switching to a Personal Health Insurance Plan 

Under the Affordable Care Act, divorce is considered a qualifying life event, which allows you to enroll in a new plan without waiting for open enrollment.  

Once your divorce is finalized, you have a 60-day special enrollment period, during which you can seek an individual health insurance plan. You can get a personal health insurance plan by visiting Covered California or purchasing a policy directly through a health insurance provider.  

Finding Employer-Sponsored Alternatives 

If you’re eligible for health insurance through your own employer, you can use your special enrollment period to choose an employer-sponsored health plan. However, your window for getting an employer-sponsored plan may be as short as 30 days, so it’s crucial to act quickly.  

Divorce and Covered California 

If you don’t have access to employer-sponsored insurance, you can turn to Covered California after divorce for health insurance in California. 

A special enrollment period exists for spouses who will lose coverage during divorce to get health insurance through Covered California. You’ll have 60 days from the day your divorce is finalized to select a plan, and you may be eligible for financial help that can cut your premiums by hundreds each month.  

Specific Considerations for Children’s Health Insurance 

Divorce insurance laws in California require all divorces involving children to include a health insurance provision. If a parent has access to health insurance at a reasonable cost, they’re typically required to secure coverage for children. In many cases, children who are already covered by one parent’s policy will remain covered by that policy following the divorce.  

If neither parent has access to health insurance, children may be eligible for coverage under the Children’s Health Insurance Program (CHIP), a program that provides families within certain income brackets free or low-cost health insurance for children. 

Navigating Medicare and Medi-Cal Post-Divorce 

How divorce impacts health insurance in California is made more complicated by your overall financial situation. Divorce disrupts your financial standing, which could change your eligibility for certain programs or your need for supplemental insurance. Understanding how divorce affects Medicare or Medi-Cal enrollment can be helpful for finding affordable health insurance.   

Here’s what you need to know about how divorce impacts health insurance in California if you need to navigate Medicare or Medi-Cal: 

• If you were married for at least 10 years, you’ll still be able to qualify for Medicare based on your ex-spouse’s work history. 

• If you delayed signing up for Medicare, it’s important to take action immediately to avoid penalties. 

• If you’re already enrolled in Medicare, your coverage will continue without interruption, but you may want to reassess supplemental insurance (like Advantage plans). 

• You may qualify for MediCal without your spouse’s income.  

• Everyone is eligible for Medicare after reaching age 65, and individuals who meet income requirements are eligible for Medi-Cal. 

Health Insurance in Divorce Settlements 

In some cases, spouse health insurance after divorce in California can be included as part of a divorce settlement. If you don’t have immediate access to employer-sponsored healthcare benefits, you may be able to get temporary insurance coverage included in the final divorce judgment.  

In most cases, this arrangement will require your ex-spouse to pay some or all of your premiums while you remain on the plan through COBRA insurance after divorce in California. 

Stay Protected After Divorce. Get a Health Insurance Quote Today 

Finding post-divorce health insurance coverage in California isn’t always easy. However, there are several options available to ensure you don’t face coverage gaps. Researching your coverage options is the best way to find affordable health insurance that meets your needs.  

Cost-U-Less Insurance helps California residents find the best health insurance coverage at the most competitive prices. When you’re navigating the complexities of divorce and medical insurance in California, local insurance experts can help you explore your options. Call today at 877-423-1543 for free help finding affordable health coverage. 

FAQs 

What happens to my spouse’s insurance after a divorce in California? 

What happens to your spouse’s insurance after a divorce in California depends on whether they are on your insurance plan. Once a divorce is final, an ex-spouse will typically be removed from the plan. It may be possible to allow your spouse to temporarily remain on your plan through COBRA.  

How long can I remain on my spouse’s health plan post-divorce? 

You can remain on your spouse’s health plan for up to 36 months after the divorce is final under COBRA. However, since you won’t be eligible for employer contributions, this option can be costly. It’s a good idea to compare your options to determine how to get the most affordable health coverage.  

Can I switch insurance plans during pending divorce proceedings? 

While it seems like a convenient option, you typically cannot switch insurance plans during pending divorce proceedings. The finalization of the divorce launches a special enrollment period, which allows you to switch insurance plans. However, it may be possible to switch during proceedings if your divorce is being carried out during open enrollment.