It’s not a secret that divorce among the over-50 crowd is on the rise. If the Affordable Care Act works as intended, the law could prove to be a game-changer, by easing the financial burden of health insurance for divorced people who get dropped from their spouse’s medical plans.
Every year approximately 115,000 women no longer have health insurance as a result of divorce.
This is due in part that they either do not work outside the home or work for employers who do not provide health insurance. A small portion of women do have employer-sponsored coverage but can no longer manage to pay the expensive costs. Many are eligible for post-divorce COBRA health plans, but COBRA is both exorbitantly expensive and is short term, lasting only about 36 months.
Generally people get dropped from their spouse’s plan, so the new legislation will help those with little or no coverage get the care they need to maintain a similar standard of living before the divorce.
Financial problems for divorcees over 50 years old may now be alleviated through Obamacare or the Affordable Care Act. Ex-spouses, left without health insurance after the divorce, many now have affordable options that may lessen the blow of divorce.
Beginning on January 1, 2014, under the Affordable Care Act, post-divorce health-care expenses will decrease for many and become more accessible. Under the new legislation, denying people coverage or increasing their premiums due to pre-existing conditions is prohibited.
This is good for how ex-spouses who can leverage health-care coverage in alimony talks. Under the Affordable Care Act, a government tax credit can go toward an ex-spouses’ health-care coverage, and having this subsidy can be a determinate into spousal support computations.
When initiating divorce proceedings, individuals should obtain a court order to guarantee that health insurance costs will be paid. In addition, couples should research how long-term care insurance may change because of divorce.
Whether you are the person filing or the one being served with divorce papers, you may have many questions about what to expect. When you are going through a divorce there are many unknowns. Your questions can be answered and your uncertainties put to rest with the counsel of a capable Family Law attorney.
Contact the Family Law offices of Holstrom, Block & Parke, located in Riverside, San Bernardino, and Orange Counties. Our divorce attorneys will sit down with you and help you plan a course of action that will put you in the best position possible once the divorce is filed.