COBRA Continuation During Divorce or Separation
A finalized divorce, legal separation, or annulment is a qualifying life event that will cause the former spouse to lose their health insurance coverage. This change in marital status triggers a special enrollment period to find new Affordable Care Act compliant health insurance.
The COBRA health insurance continuation law allows the former spouse to stay on the group health insurance plan they were on for up to 36 months.
What You Need to Know
- Divorced, legally separated, or annulled spouses may continue coverage for up to 36 months.
- You have 60 days to notify human resources of legal marital status changes.
- The plan administrator must send notice of COBRA rights within 14 days to the to the qualifying beneficiary.
- Remarriage does not end COBRA, but you have 60 days to join a new spouse’s plan.
Notify Human Resources of Marital Status Change
A divorce, legal separation, or loss of dependent status are qualifying life events that would lead to a loss of coverage. The covered employee or the qualified dependent on the plan must notify the plan administrator within 60 days of the event so the employer can send COBRA election information to the former spouse or plan dependents who are losing coverage.
The plan administrator will notify the qualifying beneficiary of their right to continue the covered employee's health plan within 14 days.
What the COBRA Election Notice Includes
The employer’s notification will contain everything they need to get started. The election notice will outline the plan’s coverage details, identify who is eligible, explain how to elect COBRA, list when current coverage ends, describe the length of continuation coverage, outline premium and payment rules, and remind beneficiaries to keep their contact information updated with the plan administrator.
Legal Separation is a Qualifying Life Event
You are still legally married after a legal separation, but many employer plans treat a “legal separation” as ending spousal eligibility. If the plan’s terms say a separated spouse is no longer eligible and coverage is lost, a special enrollment period opens for the former plan dependent spouse to find new health insurance.
Does COBRA End If You Remarry?
COBRA coverage after a divorce or legal separation can last for up to 36 months. Remarrying does not end COBRA on its own. However, COBRA can end if you choose to join your new spouse’s group health plan, since becoming eligible for other group coverage is qualifying life event that allows you to terminate COBRA continuation.