Divorce brings many changes, and one of the most critical aspects to consider is health insurance coverage. In Florida, the process and options for continuing or obtaining health insurance post-divorce are similar to other states, but there are some state-specific details to keep in mind.
1. COBRA Coverage: A Temporary Option
In Florida, you may qualify for COBRA (Consolidated Omnibus Budget Reconciliation Act) coverage after your divorce, just like in other states.
- What is COBRA?
COBRA allows you to continue your health insurance coverage under your ex-spouse’s employer plan for up to 36 months. - Who qualifies?
You must have been covered under your spouse’s health insurance during the marriage. If your ex-spouse’s employer has 20 or more employees, you’re eligible for COBRA benefits. - How much will it cost?
You’ll need to pay the full premium cost, which can be expensive, plus a 2% administrative fee. In Florida, COBRA might be a viable option if you’re in between jobs or if you need temporary coverage while finding a better long-term solution. - Actionable Tip:
Evaluate whether COBRA is the most affordable option, especially in Florida where health insurance costs can vary by region. Compare it with the marketplace plans available during your Special Enrollment Period.
2. Health Insurance Marketplace
Losing health insurance through a divorce qualifies you for a Special Enrollment Period in the Health Insurance Marketplace, and this applies in Florida as well.
- What is it?
A Special Enrollment Period is a limited window during which you can apply for health insurance outside of the usual open enrollment. In Florida, you can shop for plans on the HealthCare.gov website. - What does it cost?
Your premium depends on your income and family size. Florida residents may also be eligible for financial assistance through subsidies that can significantly reduce your monthly premium. - Actionable Tip:
Before choosing a marketplace plan, explore your income and subsidy eligibility. Florida offers plans at different coverage levels, so make sure you select one that suits both your health needs and your budget.
3. Employer-Sponsored Health Insurance
If you were covered under your ex-spouse’s employer-sponsored health plan, this coverage will end once the divorce is final. In Florida, like elsewhere, you cannot remain on your ex’s plan after the divorce.
- How long do you have?
In Florida, employer-sponsored plans typically end on the last day of the month when the divorce is final. Check with your ex-spouse’s employer to confirm the exact date and any transition options. - Actionable Tip:
If you work for your own employer, check whether they offer health insurance coverage. If you’re eligible, signing up for their plan might be a more affordable option than COBRA.
4. Children’s Health Insurance
In Florida, when children are involved, the issue of health insurance needs to be addressed in the divorce settlement.
- Who pays for it?
In Florida, the court may order one parent to provide health insurance for the children, often depending on which parent has primary custody. If neither parent has coverage, the court may require the purchase of coverage through Medicaid or the Children’s Health Insurance Program (CHIP). - Actionable Tip:
Be sure to address your children’s health insurance needs in the Parenting Plan. In Florida, courts will consider which parent has access to affordable insurance, so plan accordingly
5. Medicaid or CHIP (Children’s Health Insurance Program)
Florida’s Medicaid program provides coverage to low-income individuals, and CHIP offers coverage to children in low-income families.
- What are they?
Medicaid provides health coverage for eligible individuals, while CHIP covers children whose families earn too much for Medicaid but can’t afford private insurance. - Actionable Tip:
If you or your children are eligible for Medicaid or CHIP, Florida has specific income thresholds to meet. Check the ACCESS Florida website to see if you qualify and get assistance with applications.
6. Long-Term Planning
Health insurance is a long-term consideration after divorce, particularly in Florida, where the cost of coverage can vary widely across regions.
- Will your premiums go up?
Most likely, yes. Without your spouse’s employer-sponsored plan, you’ll need to purchase your own coverage, and the premiums may be higher. - What should you do?
Factor health insurance costs into your post-divorce budget. Florida’s plans can differ based on the county or city, so shop around to find the best coverage. - Actionable Tip:
Review your overall financial plan. Consider setting aside funds for healthcare-related expenses and re-evaluating your coverage each year during open enrollment.
Key Takeaways for Florida Residents:
- COBRA provides temporary coverage, but it can be expensive.
- The Health Insurance Marketplace offers a Special Enrollment Period where you can shop for affordable plans.
- Employer-sponsored insurance ends once your divorce is finalized. Check your own employer’s offerings.
- In Florida, the court will likely address your children’s health insurance needs in the Parenting Plan.
- Medicaid and CHIP may be options for low-income individuals or children.
- Long-term planning is crucial. Health insurance costs can change, so prepare financially.
Ready to Get Clarity on Health Insurance After Your Divorce?
Have you looked into your health insurance options post-divorce? Florida offers a variety of resources, from COBRA to Medicaid, to help you navigate this transition. Let’s ensure you’re covered—reach out for guidance.
Contact us today to schedule a consultation. Together, we’ll build a clear strategy that protects your interests and sets you up for financial security post-divorce. Don’t leave your future to chance—let’s get started.
Contact Orlando Divorce Planning now to schedule your consultation and take control of your financial future.
