Divorce Pitfalls and the Affordable Health Care Act (Obamacare)

Medical Insurance

Now, more than ever, attorneys handling matrimonial matters must consider the cost of medical insurance coverage; particularly post-divorce. Preliminarily, the matrimonial practitioner and/or the litigant must consult with an insurance professional for many reasons, including:

1. To explain the Act. The Act is complex and difficult to understand. An explanation of the nuts and bolts of the Act is necessary to ensure compliance with the law and improve the ability of the practitioner and litigant to pursue their interests.
2. To assess costs. The costs for insurance vary and may be difficult to quantify. The consultation may help determine the extent to which costs may potentially increase with the age of the recipient.
3. To determine to whom and to what extent the Act applies, including individuals and businesses and the various levels of coverage.
4. To answer whether the Act does or does not affect the utilization of Divorce from Bed and Board or COBRA coverage. (A Divorce from Bed and Board is a NJ divorce that is final, except that the parties cannot remarry. The arrangement often permits one party to remain on the other's medical insurance policy. It was created in the 1950s for those whose religious beliefs prohibited divorce. It is now used to continue medical insurance coverage. Attorneys in NJ should confirm that the insurance will continue; attorneys from other states should determine whether their jurisdictions have a similar vehicle.)

The good news is that there are several benefits of the Act: there are no limitations on coverage for pre-existing conditions or gender; various preventative services are available; no medical examination is required to qualify for coverage, and no one can be turned away.