There is nothing easy about divorce. If you trusted your spouse group health insurance Through their employer, you will need to find new health insurance after your divorce.
You have to move fast too. Because the moment your divorce is final, its health insurance provider no longer recognizes you as a spouse. If you do experience a medical emergency, you will be on the hook to pay for it completely out of pocket.
Today, we will cover how to get health insurance after divorce. We will also mention some of the key points that you should consider while shopping personal health insurance. Your first step is to gather any necessary paperwork related to your health. Write down any prescriptions you take and make a list of necessary medical equipment, such as an oxygen tank or nebulizer. Then, talk to your employer.
First, try to get health insurance through your employer.
If you’re employed full-time and earning a traditional paycheck, you may be able to get health insurance through your employer right after your divorce. Joining a group health insurance plan at work is almost always the most cost-effective way to find health insurance after a divorce.
There is no law required to provide health insurance to employees.
But President Obama Affordable Care Act (ACA) requires organizations with 50 or more employees to offer group health insurance plans to 95% of their employees. Employers who do not comply must pay hefty fines (about $4,000) for each employee they do not offer coverage.
- So, if you work full time, you can probably get a fair price on health insurance after a divorce.
- However the challenge comes with time.
- Most health insurance providers do not accept new enrollments every day.
- Instead, they have an annual enrollment period, usually in the fall, for coverage starting the following year.
- For example, if you enroll during the fall of 2021, your new coverage will typically begin on January 1, 2022.
However, since you are losing health insurance because of the divorce, you may qualify for a special enrollment period(Sept) You will need to speak to your supervisor or a human resources professional at work to find out the details.
But not everyone works full-time for a major employer. If you are unemployed, self-employed or work part-time for a small company, you can seek health insurance after divorce through the government market or private insurance companies.
Health Insurance Market Vs Private Insurance
Before the ACA, individuals looking for health insurance after a divorce had to call a few insurers, get quotes, and compare complex policy benefits and prices. Every insurer offers different plans at different price points. The good news for consumers is that the ACA has standardized all health insurance plans.
Which tier plan suits your needs after divorce?
The metal tier levels of health insurance are:
- bronze plan – With low premium but high deductible, will cover about 60% of medical emergencies.
- silver plan – Has a slightly higher monthly cost, has a somewhat lower deductible and will cover 70% of medical emergencies.
- sleeping plan – Spend a little more each month, has a lower deductible and will cover 80% of medical emergencies.
- Platinum Plan – Has the highest monthly cost but has the lowest deductible and will cover 90% of the medical condition.
Think of these different plans like you would think of gasoline at different gas stations. An unleaded 87 at one gas station will be essentially the same as a gallon of 87 at another gas station.
And Company A’s Silver Plan will be almost the same as Company B’s Silver Plan.
Once you choose the right metal level for your needs, all you need to do is compare monthly premiums to decide which insurer is offering the best value.
Choosing the right metal level for health insurance after divorce
It is important to think about the metal levels before choosing a health insurance plan after divorce. Even if you qualify for a Special Enrollment Period (SEP), once enrolled you will not be able to change your plan until the next enrollment period.
Now, many newly divorced people are short of cash. If this is your situation – you are single, young and healthy – you may find that the Bronze plan best suits your immediate financial needs. Just remember that deductibles, prescription drug prices, and medical bills will be higher if you have a medical problem in the future.
Silver and gold plans are often preferred by parents with young children and a group of mature adults. You’ll pay more each month for health insurance, but emergency room visits, doctor’s appointments, and medications are more affordable. If you are responsible for providing health insurance for your children after a divorce, you may prefer one of these plans.
Platinum plans make the most sense for people with a number of known health conditions and for older adults. You will pay a higher monthly premium. But you’ll pay less for ongoing doctor visits and multiple prescriptions.
And remember, if you’re 65 or older, you may be eligible for Medicare after a divorce.
Divorce Triggers SEP for Medicare Eligibility
If you are 65 or almost 65 at the time of your divorce, you may qualify for Treatment.
- Medicare is a federal health insurance benefit that Americans earn by paying payroll taxes throughout their careers.
- You need to have worked approximately 40 quarters (ten years) within the last 20 years before retirement to qualify.
Divorce, retirement or other loss of health insurance triggers a special enrollment period (SEP) for Medicare coverage.
Unlike other health insurance plans that you can buy after a divorce, Medicare does not have metal tier plans. Medicare Part A is hospital coverage. Part B is like traditional health insurance. This covers doctors’ appointments and diagnostic tests. Part D is drug coverage, and Part C is usually a combination of Medicare Parts A, B, and D.
Part A is the only free benefit. Part B, C and D will all cost monthly premium.
Medicare is a complicated topic, and that’s an article for another day. Just know that it is an affordable option for senior citizens seeking health insurance after divorce.
Disclaimer: The opinions expressed within this article are the personal opinions of the author. The facts and opinions appearing in the article do not reflect the views of knews.uk and knews.uk does not assume any responsibility or liability for the same.