Will I Lose My Health Insurance After the Divorce?

 Posted on March 25, 2025 in Divorce

Divorce can turn your world upside down, bringing significant financial and legal changes– including the potential loss of health insurance. If you relied on your spouse’s employer-sponsored plan, you may wonder how to protect your coverage and avoid unexpected medical costs. Fortunately, you have options, and understanding them now can help you make informed decisions and prevent a coverage gap. An Illinois divorce lawyer can offer guidance about how to secure the coverage you need and move forward with confidence.

Can I Stay on My Ex-Spouse’s Health Insurance After Divorce?

In most cases, you cannot remain on your ex-spouse’s employer-sponsored health insurance plan after divorce. Under federal law, employer-sponsored plans that provide coverage to an employee’s spouse are legally required to end that coverage upon divorce.

However, children covered under a parent’s health insurance plan can usually remain covered, regardless of the parents’ marital status. In Illinois, courts often order one or both parents to maintain health insurance for their children as part of child support agreements.

What Are My Health Insurance Options After Divorce?

Losing your spouse’s insurance does not mean you have to go without coverage. You have several options, such as:

• COBRA Coverage: The Consolidated Omnibus Budget Reconciliation Act (COBRA) allows you to stay on your ex-spouse’s employer-sponsored plan for up to 36 months, but you must pay the full premium.

• Employer-Sponsored Health Insurance: If your job offers health insurance, you can apply after the standard enrollment period, as divorce qualifies as a "life event."

• Health Insurance Marketplace Plans: Divorce also qualifies you for a special enrollment period under the Affordable Care Act (ACA), allowing you to sign up for a marketplace plan typically within 60 days of your divorce.

• Medicaid: If you meet income requirements, you may qualify for free or low-cost coverage through Illinois’ expanded Medicaid program.

Can My Divorce Settlement Include Health Insurance Coverage?

While an employer cannot be forced to cover an ex-spouse, a divorce settlement can address health insurance costs. For instance, the court may require one spouse to help pay for the other’s insurance for a set time or cover COBRA premiums. Illinois courts also consider health insurance when awarding spousal maintenance, and a lower-earning spouse may receive extra support to help with the costs.

How Soon Will My Coverage End After Divorce?

The timeline for losing health insurance depends on the employer’s policy. Some plans terminate coverage immediately upon finalizing the divorce, while others may extend coverage until the end of the month. If you plan to use COBRA, you must elect coverage within 60 days of losing your spouse’s insurance. It is important to start exploring your options before the divorce is finalized in order to avoid a coverage gap.

What Should I Do to Protect My Health Insurance During Divorce?

To avoid losing health coverage unexpectedly, consider these steps:

• Review your current policy to understand when coverage will end.

• Explore alternative insurance options before the divorce is final.

• Negotiate insurance costs in the divorce settlement, if possible.

• Check COBRA eligibility and expenses if you need temporary coverage.

A divorce lawyer can help you navigate these issues and work toward a settlement that addresses your health insurance needs.

Contact a DuPage County, IL Divorce Attorney

Losing health insurance after a divorce can be stressful, but with the right planning, you can secure new coverage that meets your needs. A knowledgeable Wheaton, IL divorce lawyer at Goostree Law Group can help you understand your options and negotiate a fair settlement. Call 630-364-4046 today to schedule a free consultation.