Health insurance can be one of the first concerns in an Illinois divorce. One spouse may be insured only through the other spouse’s employer. The children may be covered under that same plan. The coverage may continue while the divorce is pending, yet once the divorce is finalized, the dependent spouse’s coverage can quickly change. Generally, a divorce prevents a former spouse from staying on the employee-spouse’s health insurance plan as a spouse. Once the judgment of dissolution of marriage is entered, the former spouse is no longer the employee’s legal spouse. So, if the employer’s group health plan only covers current spouses, the former spouse will no longer qualify for coverage as a spouse under that plan. COBRA may provide that former spouse a temporary way to continue the same group health insurance post-divorce. COBRA is not a new insurance plan, but rather it is continuation coverage. It allows certain individuals who lose group health insurance because of a qualifying event to keep that coverage for a limited time if those individuals properly elect coverage and pay the required premium. Divorce or legal separation is a COBRA qualifying event. 29 U.S.C. § 1163(3). COBRA coverage may last for up to 36 months for a former spouse or dependent child who loses coverage due to divorce. COBRA is not automatic. If you are someone who depends on your spouse’s employment-based health insurance, address COBRA before the divorce is final. All parties should know whether COBRA is available, how much it will cost, who will pay for it, and whether other health insurance options make more sense. Does Divorce End Health Insurance Coverage In Illinois? Someone may have health insurance only because that person is married to an employee who receives benefits through work. While an Illinois divorce case is pending, the parties are still legally married. The judgment for dissolution of marriage changes the legal relationship. Once the divorce is final, the dependent spouse is no longer the employee’s spouse. If the group health plan only covers current spouses, the former spouse will no longer qualify for coverage as a spouse under that plan. The dependent spouse is not completely out of luck, though. COBRA might be an available option. The spouse who depends on the other spouse’s insurance should thus identify the plan administrator, confirm whether the plan is subject to COBRA, and find out what happens to coverage […]
