Introduction
Divorce can create a myriad of issues, and one crucial matter that needs to be addressed is health insurance coverage for both parties involved. Uncertainty and confusion may arise if one spouse is covered by the other spouse’s health insurance plan. In Ohio, individuals facing divorce can rely on the Consolidated Omnibus Budget Reconciliation Act (COBRA) laws, which provide guidelines on how to handle health insurance during this challenging time.
Understanding COBRA
The complexity of health insurance coverage during a divorce is addressed by the federal law known as COBRA. This law requires employers to offer continuation of certain employee benefits, including health insurance, for a specified period of time after qualifying events such as job loss, reduction in work hours, or divorce. COBRA empowers employees and their dependents to retain their health insurance coverage under the employer’s group health plan for up to 36 months following a qualifying event, but they are responsible for covering the costs themselves.
Ohio’s Mini-COBRA Law
In line with COBRA, Ohio has implemented the Ohio Continuation Coverage Law, often referred to as the mini-COBRA law. This law is designed for smaller employers with 20 or fewer employees, providing continuation of health insurance coverage for up to 12 months after qualifying events, including job loss, reduction in work hours, or divorce. However, the premiums for this coverage must be paid by the employee or their dependents.
Health Insurance and Divorce in Ohio
It is a common scenario in Ohio for one spouse to rely on their partner’s employer-sponsored health insurance. However, in the event of divorce, the loss of healthcare coverage can become a serious concern. Fortunately, Ohio residents who experience this loss may qualify for COBRA or Ohio’s mini-COBRA coverage, granting them the opportunity to maintain their health insurance.
Qualifying for COBRA or Mini-COBRA Coverage
To qualify for either COBRA or Ohio’s mini-COBRA coverage, individuals must meet specific criteria, including:
- The employer must have at least 20 employees for COBRA or fewer than 20 employees for Ohio’s mini-COBRA, and offer a group health plan.
- The loss of coverage must be due to a qualifying event, such as divorce.
- The person losing the coverage must be a qualified beneficiary, which includes the employee, their spouse, and their dependent children.
Length of Coverage
COBRA provides an individual with the opportunity to receive up to 36 months of health insurance coverage following a qualifying event, such as divorce. However, Ohio’s mini-COBRA law has a shorter duration, offering continuation coverage for only up to 12 months.
Cost of Coverage
Continuing healthcare coverage through COBRA or Ohio’s mini-COBRA can be financially burdensome, as the individual or their dependents must bear the entire premium for the coverage, including the portion previously covered by the employer, plus an additional 2% for administrative costs.
Other Options for Healthcare Coverage
For those who find the cost of continuation coverage under COBRA or Ohio’s mini-COBRA to be too expensive, there are alternative options available, which include:
- Obtaining coverage through a new employer’s group health plan
- Purchasing individual health insurance coverage through the marketplace or a private insurer
- Enrolling in a government-sponsored health insurance program such as Medicare or Medicaid
Conclusion
Understanding health insurance coverage options is crucial for individuals going through a divorce in Ohio. COBRA and Ohio’s mini-COBRA laws provide avenues for continuation of coverage, but the associated costs may present a barrier for some. Considering the rules and limitations of these programs is essential, as is exploring alternative options for healthcare coverage.