People often don’t think about insurance until it becomes necessary. Many California families are reliant on the health coverage, as well as life insurance, provided by the employer of the highest earning spouse. No one wants to consider the worst-case scenario in marriage, whether that means divorce or the death of a spouse; however, some things require attention before they become urgent.
Two years ago, the Kaiser Family Foundation found that almost one quarter of women in this country under 64 years of age received their health coverage through the plans provided by their spouses’ employers. In general, women are more likely to be dependent on this than their husbands, although this is not always the case. Spousal benefits are subject to a number of variables, making it more complicated to determine how one’s insurance may change following divorce.
The Affordable Care Act was initially introduced to help reduce such concerns; however, this plan has not worked out as the government had hoped. Premium costs rose faster than anticipated, due to a number of factors. There now exists the possibility that the Act will be repealed, with no replacement plan yet in sight.
This make it even more important for California residents to ensure that they have appropriate insurances in place for themselves and their dependents. In the event of divorce, an employer’s health insurance may still benefit children as dependents, but will not continue to cover an ex-spouse. Appropriate advice will help one to find the best way to make provision in case of future emergencies.
Source: Los Angeles Times, “If you’re on a spouse’s health plan, what happens if the worst should happen?“, David Lazarus, July 4, 2017