ASK ANGIE^TM
By Angela Hallier, Esq.
Answers to your divorce and family law questions

Q I currently have health insurance coverage through a group plan sponsored by my Husband's employer. Can I keep that health insurance coverage after our divorce is final?

A If you and your spouse are on a group plan through his employer, you will have to obtain separate coverage once the divorce is final. You should first determine if you qualify for another group plan through your own employer or organizations to which you may belong. If you do not, and if the employer who provides the insurance to your Husband has at least 20 full time employees, one alternative is to keep the same insurance under what is referred to as "COBRA" coverage. You can keep the same coverage as under the group plan, for up to 36 months, but the insurer is not required to offer you the coverage at the same cost. You can be charged up to the full insurance cost (without any employer subsidy), plus 2%. This increase in cost over what your spouse was likely paying can make it more cost effective to obtain a separate individual policy if you qualify for one. For individuals who cannot qualify for other health insurance or who qualify only if certain health conditions are excluded from coverage, COBRA coverage may be your best option. Even though COBRA coverage expires in 36 months, insurance laws now mandate that health insurance coverage be made available to individuals who do not qualify for other health insurance when their COBRA coverage expires. This insurance is referred to as Portability Coverage, and most large health insurance carriers offer it.

The requirements to qualify for Portability Coverage are very specific, but generally if you have been under a COBRA policy through your spouse's former employer since your divorce and you will not qualify for other insurance (including medicare or medicaid) when the 36 months expires, you may be able to obtain Portability Insurance. Portability Insurance covers all pre-existing conditions, but can be expensive, and may cost upwards of $1000 per month depending on your age and the deductible chosen. On the other hand, if you are in good health and can qualify for an individual plan at the time of your divorce, you should explore obtaining such a policy. A significant concern if you take COBRA coverage, even though you could obtain an individual plan without exclusions, would be an intervening illness or injury. If during your time under the COBRA plan you experience a significant injury or illness, you could find it difficult to obtain a basic individual plan when your COBRA coverage ends. However, if you obtain an individual plan right from the start, continued treatment of your injury or illness would likely be covered.

We refer our clients to a health insurance specialist to assist in making these decisions when needed. If you would like such a referral, call my office. And remember, if you are entitled to receive spousal maintenance, the cost of health insurance is a living expense to include when determining the appropriate amount of spousal maintenance you should receive.

It is always advisable to seek the counsel of a qualified attorney who can advise you specifically about your case. The information in this column is provided for general information only in the state of Arizona, is not specific to any one case and does not create an attorney-client relationship between the author and the reader. ©2003 - 2008 Hallier Law Firm PLC

ASK ANGIE^TM is published monthly in Arizona Trends Magazine.