When a couple in Virginia decides to divorce, one of the most significant concerns is often the issue of health insurance coverage. Health insurance is essential for everyone, and losing it during a divorce can be devastating. While a divorce can be emotionally exhausting, it is essential to understand the legal aspects of divorce, including how it may affect your health insurance. In this article, we will discuss what to know about Virginia divorce and health insurance.
Overview of Virginia Divorce Laws
Virginia divorce laws stipulate that couples must have lived “separate and apart” for at least one year before they can file for divorce. Nevertheless, this does not mean that couples have to live in separate dwellings, as Virginia law offers three types of separation:
- Living separately
- Being separated under the same roof
- Voluntarily deciding to stop cohabitating and ceasing marital relations.
Additionally, Virginia is an equitable distribution state, meaning marital property will be divided equitably in the event of divorce. This does not imply that assets will be split 50/50 between the spouses. Instead, a judge will examine several factors, such as the length of the marriage, the age and health of each spouse, their contributions to the marriage, and each spouse’s future earning potential, when determining a fair allocation of marital property.
Health Insurance and Virginia Divorce Law
When it comes to divorce and health insurance, several factors are at play. Primary considerations are whether the health insurance policy is obtained through one spouse’s employer or if it is obtained through the Affordable Care Act (ACA) marketplace or Virginia Medicaid expansion program.
Health Insurance Through An Employer
If the health insurance policy is obtained through one spouse’s employer, divorce could affect it in several ways. First, if the couple is separating under the same roof and remain on the same health insurance policy, it is unlikely that anything will change. In contrast, if one spouse decides to move out of the home and onto another health insurance policy, the other spouse may lose coverage under their previous policy.
Furthermore, during the divorce process, the judge could require either spouse to maintain current medical coverage. If one spouse is covered on the other spouse’s policy, the court might order the employed spouse to keep the other insured until the divorce is final.
After the divorce is final, the employed spouse is no longer required to keep the other party insured unless it is part of the final divorce order. Therefore, those who lose coverage due to divorce should explore alternative individual health insurance policies. They may need to consider options such as private insurance plans or coverage through the ACA marketplace to ensure continued health insurance coverage.
Health Insurance Through Affordable Care Act Marketplace or Virginia Medicaid Expansion Program
If one spouse obtains health insurance through the ACA marketplace or Virginia Medicaid expansion program, the process of obtaining it doesn’t depend on marital status. Therefore, divorce usually does not affect eligibility for coverage under these programs.
Suppose the spouses share a policy under these programs. In that case, they may need to obtain separate policies after the divorce as the policies are usually based on the individual, not the marriage. However, it is essential to keep in mind that policymakers may change coverage rules, which means divorcees should review their policy guidelines carefully. It is advisable to consult with a professional who can guide them through the process and help them navigate any changes that may affect their health insurance coverage.
COBRA Insurance Coverage
In Virginia, COBRA insurance coverage secures health insurance coverage for spouses who lose coverage due to divorce. COBRA coverage is a federal law that enables individuals to remain on their previous employer’s health insurance policy for a fixed period.
To qualify for COBRA coverage, it is necessary to work for an employer with at least 20 employees. Additionally, the employee must have been enrolled in the employer’s health insurance plan when they were married. Under COBRA, the former spouse must pay 102% of the insurance premium to maintain coverage. This can be a significant financial burden, but it provides an option for maintaining health insurance coverage during the divorce transition period.
Conclusion
Losing health insurance coverage during a divorce can be overwhelming, considering the emotional and financial stresses involved in the process. It is essential to understand the legal aspects of divorce in Virginia, including how it might affect your healthcare benefits. In Virginia, divorce affects health insurance policies in various ways, depending on the insurance program, including the Affordable Care Act marketplaces, Virginia Medicaid expansion program, and COBRA insurance coverage. Therefore, anyone going through a divorce in Virginia with a shared health insurance policy must consult with their insurance provider to explore the options available to them to ensure that they have insurance post-divorce. By understanding the legal nuances surrounding health insurance and divorce in Virginia, individuals can make informed decisions and take the necessary steps to protect their health and well-being.