Financial preparation prior to filing for divorce can substantially ease your stress during and after divorce. If you have been out of the workforce for some years, the idea of becoming self-supporting can be daunting. The three biggest expenses you need to plan for are your home, car, and food. Your fourth largest expense will be for medical care and health insurance. The annual premium for an individual health plan in 2018 was nearly $7,000--over $500 per month--and that plan comes with an average deductible of $1,500. Fortunately, Illinois has a Spousal Continuation Law (215 ILCS 5/367.2) that allows you to remain on your spouse’s employment-based insurance plan after divorce.
How to Stay on Your Spouse’s Health Insurance After Divorce
If you want to remain on your spouse’s health insurance after your divorce, your spouse must notify their employer and insurance company of the divorce within 30 days of the final decree. This will trigger the insurance company to send you a notice about the continuation of coverage. You must return your response to the insurance company within 30 days.
The Cost of Spousal Continuation Coverage After Divorce
When you elect spousal continuation coverage, you must pay the entire premium. That includes both the amount an active employee would normally pay plus the employer contribution. Employees typically pay about 20 to 30% of the total premium, with the employer picking up the majority of the cost....