Who pays for child health insurance after divorce?
Divorce can bring not only emotional but also financial upheaval. When parents divorce, they must make decisions regarding the healthcare of their children, including who will pay for health insurance.
What happens to health coverage?
If the divorcing parents have group health insurance through an employer, usually the coverage of the children will not be affected by the divorce. Depending on the specific plan, their former spouse may remain their spouse’s dependent until the date of the divorce. The former spouse can also add the children to their own insurance plan and remain responsible for their health insurance coverage.
What is COBRA?
The Consolidated Omnibus Budget Reconciliation Act (COBRA) helps to provide health insurance for individuals who become ineligible for their current plan due to certain life-changing events such as divorce. The spouse who was covered under the other’s insurance plan has the option to extend their coverage for 36 months, allowing for the unrestricted access to continued coverage for their children.
How are healthcare expenses split?
Divorcing parents must decide how their children’s healthcare expenses will be split. One option is to pay an agreed-upon amount each month that cover both parents’ portion of a health insurance premium; the rest of the expenses are then divided b
Typically, each parent is responsible for the health care expenses incurred in his/her own household. This means that if the ex-spouse has health insurance through their job, they would be responsible for the health care expenses and the costs associated with that insurance, while the other parent may be responsible for health care costs and insurance premiums.
Which parent is responsible for health insurance premiums?
The custodial parent is typically responsible for health insurance premiums, but the non-custodial parent may also be required to contribute to medical costs. States may devise a formula for how much the non-custodial parent must pay for health insurance for their child. Ultimately, the court will decide which parent(s) is responsible for the health insurance premium.
When deciding who will be responsible for health insurance after a divorce, parents should consider the following tips:
- Negotiate an agreement– If a court decision is not necessary, the parents may be able to work out an agreement as to which parent will be primarily responsible for the premium costs and copayments.
- Understand the cost of coverage– The cost of health insurance premiums and copayments should be considered when making decisions. Both parents should ensure they have a good understanding of the costs associated with health care coverage.
- Consider creative solutions– If a non-custodial parent is able to contribute to premium costs and co-payments, parents should consider alternate methods of payment such as payroll deductions or automatic transfers from a checking account.
- Check state laws-Each state’s laws may vary on how health insurance expenses should be divided. Parents should be sure to review their state’s laws or work with an attorney to determine their rights and responsibilities.
Divorce can bring a lot of uncertainty, but it doesn’t have to complicate medical expenses for children. With the right strategies and plans, parents can keep the costs of health insurance for their children manageable.