Obamacare's Benefit to the Newly Divorced


Obabamacare may be one of the most controversial policies of our time, but ex-spouses left without health insurance after their divorce in Pasadena may well end up big winners under the new law.

Losing health insurance after a divorce is a serious problem in our society. A recent University of Michigan study found that 115,000 women lose insurance each year due to divorce. (Women are more vulnerable than men to the loss of health insurance after divorce because they are more likely to work part time or in jobs without benefits, but it should be noted that many men do lose insurance coverage after divorce as well.)

Previously, the best option for someone left uninsured after divorce was to use COBRA coverage until they could obtain a job with employer provided insurance. COBRA coverage is not subsidized by the ex-spouse's employer, however, and can easily be $1,500 or more per month. For many newly divorced people, this expense is not possible.

Obamacare provides both men and women who don't have access to employer-based insurance the ability to buy insurance through private exchanges. Subsidies are given based on the person's income and people with incomes up to 400% of the Federal Poverty Level can receive a subsidy. So, for example, a woman who was only working part time or was a stay at home parent before her divorce would likely pay little or nothing for her insurance coverage. Some newly divorced people may even be eligible for Medicaid under expanded coverage rules.

The new law is especially helpful for older people who have divorced, since they are most likely to have health problems that require expensive medical care. Obamacare prohibits private insurers from denying you coverage based on preexisting conditions. Insurance companies will also be prohibited from charging women more than men for the same type of policy, which has been another factor in the struggle of divorced women to obtain affordable coverage.

For the higher earning spouse who might have previously been ordered to provide insurance as part of a spousal support obligation, the availability of affordable coverage through Obamacare may result in lower overall spousal support expenses.

How Can We Help?

Please call our office at (626) 683-8113 or email us at info@PasadenaLawOffice.com if you are in need of legal representation during your divorce. Our Pasadena matrimonial law firm can help ensure that you receive the most favorable settlement possible.