Upon the entry of a Final Judgment of Divorce, an ex-spouse is no longer considered a “family member” for health insurance purposes and thus, cannot remain on the other party’s insurance plan. Importantly, this terminating event is absolute and cannot be overcome by consent of the parties or Court Order. However, the now “uncovered” ex-spouse may have several options to ensure uninterrupted coverage.
Under federal law, known as the Consolidated Omnibus Budget Reconciliation Act (COBRA), an ex-spouse may be able to continue on the other party’s employer sponsored health insurance for a period of thirty-six (36) months. This option must be selected within 60 days of the Final Judgment of Divorce.
If the ex-spouse is employed and health insurance is available through his/her/their employer, coverage may become available even if the divorce judgment is not entered during an open enrollment period. Divorce is considered a qualifying event to add coverage at any time.
Those who do not have benefits available through an employer or access to alternative health insurance programs, i.e. Medicare, can review, compare, and purchase health insurance through the open marketplace, created by the Affordable Care Act. “Get Covered New Jersey” is the official health insurance marketplace in New Jersey.
Generally, an important consideration in selecting health insurance following a divorce is the cost of coverage. According to eHealth [1], the average cost of individual health insurance in New Jersey is $574.99 per month. For that reason, it should not be surprising to learn that on May 2, 2024, proposed legislation was introduced in the New Jersey Assembly that seeks to explicitly consider the availability and cost of health insurance coverage as a factor for determining alimony.[2] While this legislation has not yet gained much traction, we are keeping an eye out; especially, as the cost of health insurance continues to steadily increase each year.
If you have any questions or concerns regarding the impact of a divorce on your health insurance benefits, contact the attorneys at Hagan, Weisberg & Nunn for a consultation.
[1] https://www.ehealthinsurance.com/new-jersey-health-insurance
[2] https://pub.njleg.state.nj.us/Bills/2024/A4500/4203_I1.PDF
