What Happens to Health Insurance in a Gray Divorce?

 Posted on November 07, 2024 in Divorce

Divorcing later in life presents many unique challenges, particularly when it comes to finances. A significant concern during a "gray divorce"—a term used to describe divorces involving spouses aged 50 or older—is health insurance. After years of shared coverage, suddenly losing access to affordable healthcare can create financial strain at a time when healthcare needs typically increase. Whether you are still on an employer-sponsored plan or approaching Medicare eligibility, an experienced Illinois family law attorney can provide insight into coverage options and strategies to protect your future healthcare needs.

How Is Health Insurance Affected in a Gray Divorce?

One of the most immediate concerns for people divorcing later in life is the potential loss of health insurance coverage. Those who rely on their spouse’s employer-sponsored health insurance may lose access to that coverage once the divorce is finalized. However, the following alternatives may be available:

• COBRA Coverage: Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), a spouse losing health insurance due to divorce may be eligible to continue coverage under their former spouse’s employer-sponsored plan for up to 36 months. This temporary safety net can be expensive, as the spouse must pay the full premium.

• Private Health Insurance: Another option is to purchase private health insurance, which can offer longer-term coverage. However, depending on the selected policy, it can come with higher premiums and deductibles.

What Are the Considerations for Medicare in a Gray Divorce?

For those over 65, Medicare is often a key component of healthcare coverage. But how does a gray divorce affect Medicare?

• Eligibility for Medicare: If both spouses are already enrolled in Medicare, a divorce generally does not affect their eligibility. Each person’s Medicare benefits are tied to their work history and Medicare system contributions.

• Medicare Part B Premiums: If one or both spouses are not yet enrolled in Medicare, a gray divorce could affect income levels, which may impact the amount paid for Medicare Part B premiums. Since these premiums are income-based, the financial settlement from the divorce could either increase or decrease the payment.

Are There Any Illinois Laws That Impact Health Insurance After Divorce?

State law does not require a spouse to continue providing health insurance for their ex-spouse after a divorce. However, the court can order one spouse to contribute to the other’s healthcare costs as part of a spousal support arrangement. This could be especially helpful for a spouse who has not yet reached Medicare eligibility or has significant medical needs.

Contact a DuPage County Gray Divorce Lawyer

If you are navigating a gray divorce and feel concerned about health insurance and healthcare costs, it is important to understand your options. Contact a Wheaton, IL divorce lawyer at Divorce Over 50 - Goostree Law Group. Our team can work with you to protect your financial and healthcare future. Call 630-634-5050 today to schedule a free consultation.