Handling Health Insurance in an Illinois Divorce

 Posted on March 17, 2025 in Divorce

Many married couples are both covered under one health insurance plan, usually through one of the spouse’s employers. When both spouses work, they may choose the employer who offers the best insurance plan for themselves and their children. The spouse who has health insurance through his or her employer is the "policy holder." The employee's spouse and children are known as "dependents" or "family members." A divorce can change how each spouse and the children are covered.

Both spouses can remain covered under an existing health insurance policy until the divorce is final. Once the divorce is completed, the former spouse is no longer considered a "family member" and may no longer remain on the insurance policy. If the dependent spouse cannot obtain insurance through his or her own workplace, insurance could be secured through the Affordable Care Act, Medicaid, or Medicare (depending on age).

There are additional options for the spouse without health insurance as well as for any children belonging to the couple. Health insurance must be discussed during the divorce so that one spouse or the children do not end up uninsured. An experienced St. Charles, IL family law attorney can help you determine the best way to obtain health insurance for you and your children.

What Are the Options for a Spouse Who Will Be Uninsured When the Divorce Is Final?

It is important to discuss the terms of health insurance during the divorce. Illinois offers an option known as the Spousal Continuation Coverage Law, which allows the dependent spouse to remain on the current health plan when that spouse pays all applicable premiums. The owner of the plan must notify his or her employer within 30 days of the final divorce decree.

Only certain plans will provide this continued coverage after a divorce, and even among those that do, there can be time limits for how long the health insurance coverage will continue. Health insurance plans through self-employment, unions, or out-of-state plans are usually ineligible for continuation of a spouse’s coverage.

It is important to check and see whether this coverage is available before counting on it for health insurance. An alternative might be for the employee spouse to provide monthly funds for the dependent spouse’s insurance costs, in some cases, in lieu of spousal support (depending on the cost).

If the dependent spouse is unable to get health insurance through his or her own employment – or is not employed – he or she could qualify for Medicaid. If the dependent spouse is close to retirement age, Medicare could cover health insurance. COBRA could also be a potential way to continue receiving health care coverage for a period of time, but it can be prohibitively expensive.  

Can the Employee Spouse Remove the Dependent Spouse During the Divorce?

A spouse who carries health insurance for his or her spouse and children through employment might try to remove the dependent spouse while the divorce is ongoing. Filing for divorce is not usually considered a qualifying event; only the finalization of the divorce is. Since changes can usually only be made when there is a qualifying event, the spouse who is removed during the divorce can ask a judge for an emergency motion that reinstates health insurance until the divorce is final.  

Who Insures a Couple’s Children After Divorce?

If a couple has children who require health insurance, the covered spouse may choose to keep the children on his or her employment health insurance plan. Depending on the allocation of parental responsibilities, parenting time, and child support, one parent may be able to get the children insured through the Affordable Care Act or through Medicaid, depending on income level. The parents will usually split the cost of health insurance for the children based upon their respective incomes.

Contact a Kane County, IL Divorce Lawyer

The necessity of health insurance, along with the cost, requires divorcing couples to have honest discussions about how all family members will get their health insurance after the divorce. Having a St. Charles, IL divorce attorney from Mirabella, Kincaid, Frederick & Mirabella, LLC will help ensure a fair solution for all is reached. Call 630-665-7300 to schedule an initial attorney meeting to discuss your issues. MKFM Law has offices in Kane County, DuPage County, and DeKalb County for your convenience.