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Health Insurance Deductible Concerns in Divorce

One of the benefits commonly provided by employers could cause serious consequences for some marriages on the brink of divorce. Health care has always played a role in negotiations over custody, spousal support and property division, but the passage of the Affordable Care Act offered those with pre-existing conditions some amount of security. This law may soon be overturned and the prohibition against higher premiums for pre-existing conditions lifted. Some Kentucky couples have responded by showing more reluctance in untying the knot.

A University of Michigan study showed that around 115,000 women lost their coverage after divorce annually prior to the ACA. When these women are facing an expensive series of treatments, the loss of coverage could cost more to replace than what is available from alimony or property division. The ACA helped to address this situation by banning excess charges for pre-existing conditions.

Those with long-term needs can find themselves in trouble years after the divorce as COBRA only allows for three years of continued coverage under a former spouse’s plan. In light of the possible repeal and replacement of the ACA, some couples have chosen to postpone divorce by entering into family law alternatives, such as post-nuptial contracts.

A Kentucky resident facing the possibility of divorce may want to reconsider the role health care plays in their life and the family finances. Insurance deductibles, including future projections, can be a consideration in property division and spousal support negotiations. An attorney may be able to help a client fight for a fair divorce agreement. Examination of insurance and other financial issues could result in a better financial picture after the divorce.