The short answer-yes and no. If you are covered by your spouse’s insurance at the time the Petition for Dissolution is filed, you may stay on your spouse’s insurance until the decree is signed (divorce finalized) and then your coverage is terminated. However, COBRA (Consolidated Omnibus Budget Reconciliation Act) can provide a way to extend coverage.
COBRA is a federal law which required employers with over 20 employees, who offer health benefits, to provide the option of an employee continuing this coverage for a limited duration in the event that they would lose their benefits due to termination of employment (except for gross misconduct), reduction of hours, employee’s death, divorce or legal separation, entitlement to Medicare, loss of dependent child status, or employer’s bankruptcy. This allows individuals who would be left without healthcare to still be covered until they find another insurance plan. The maximum period of continuation coverage is 18 months except for special circumstances such as disability or death, divorce, legal separation, loss of dependent child status, or entitlement to healthcare. If any of those situations apply, coverage is extended to a maximum of 36 months.
What about if the employer has fewer than 20 employees?
Beginning January 1, 2019, Arizona enacted a “mini”-COBRA which now subjects small businesses with less than 20 employees who do provide health insurance (ARS § 20-2330). Just like the federal version, the Arizona mini-COBRA allows a person to continue having health insurance coverage under the same policy for 18 months. A person qualifies for this due to termination of employment (except for gross misconduct), reduction of hours, employee’s death, divorce or legal separation, entitlement to Medicare, loss of dependent child status, or employer’s bankruptcy. The employer also has the option to add a 5% administrative fee to be paid by the person applying for mini-COBRA.
What does this mean in a divorce?
If you are going through or are about to go through a divorce and receive insurance through your spouse’s employer, you are covered until the decree is signed. Once the decree is signed and the divorce finalized, you can purchase COBRA coverage. Since Arizona has now adopted “mini”-COBRA, you most likely qualify for COBRA coverage unless your former spouse works at a company which does not provide health insurance. However, even if you qualify for COBRA, COBRA coverage is typically expensive and so it is generally advantageous to find another way to receive insurance coverage or to stay on it as briefly as possible.