|
Divorce is one big disruption in the normal flow of couples' lives. One of the primary concerns of couples when getting a divorce is how it would affect their own as well as their children's usual health coverage. It would be a lot easier to deal with the divorce and divorce aftermath if one could put one's mind at ease about important issues such as this.
Typically, when one spouse gets a divorce, his/her beneficiaries will not be continued to be covered by his/her health coverage from work. Because group health coverage can be a lot more affordable than private health coverage, this could make a big financial impact on newly-divorced people as well as their children. The Consolidated Omnibus Budget Reconciliation Act (COBRA) makes sure that a big part of this financial burden is taken off the shoulders of the people concerned.
How does COBRA affect you after the divorce or during legal separation?
Instead of losing coverage after a divorce, COBRA enables employees, their ex-spouses and children to retain their current plan coverage over a limited period of time. Spouses are given the choice of whether they want to retain the coverage of a maximum of 3 years (36 months).
Will you still need to pay the premiums?
Yes, if you are qualified for the COBRA coverage, you may need to pay the entire cost of the plan, plus a possible 2% service charge from the employer, should they decide to charge you for it. You may also need to pay for all costs related to deductibles which are part of the employer's group health care plan. If you fail to make premium payments, the employer may elect to terminate your coverage.
Can your benefits change under COBRA?
You'll still be eligible for all the same benefits that you (and your children, if applicable) enjoy before the divorce or legal separation. Employers are not allowed to change your plan or benefits specifically, but should they decide to employ changes on the health care plans that affect all current employees, then you'll be affected by the change/s as well.
Can I waive the right to claim COBRA coverage?
Yes, you can waive your right to claim coverage.
What if I change my mind later?
There is a 60-day election period wherein you can decide whether you want COBRA coverage or not. You can waive it and change your mind as long as it is still within the election period.
|
Subscribe
