Divorce can bring many changes, including how health insurance coverage is handled for spouses and children. One critical legal tool that ensures continued coverage after a divorce is a health insurance assignment order. This court order requires one spouse, often the one who has employer-sponsored health insurance, to maintain coverage for their former spouse or children as part of the divorce settlement.
At Law Office of Michael L. Fell, we help individuals navigate the complexities of health insurance in divorce proceedings, ensuring that all necessary legal protections are in place to safeguard you and your family’s well-being.
What Is a Health Insurance Assignment Order?
A health insurance assignment order is a court directive that mandates one party to continue providing health insurance for their dependents, typically a former spouse or children. These orders are commonly issued as part of divorce settlements to ensure that no one loses coverage due to the separation.
In many cases, one spouse may have a job that provides health benefits, while the other relies on that coverage. Without an assignment order, the non-employee spouse and children could lose their insurance after the divorce is finalized.
Why Are Health Insurance Assignment Orders Necessary?
Maintaining health insurance coverage is essential, especially for families with children or spouses who may not have immediate access to employer-sponsored benefits. A health insurance assignment order:
- Ensures that children remain covered under the same health insurance plan after the divorce
- Helps a former spouse transition financially until they can obtain independent coverage
- Prevents costly gaps in medical coverage that could result in unpaid medical bills
- Reduces disputes over who is responsible for providing and paying for health care expenses
Without a court order in place, an employed spouse could remove their former spouse or children from their health plan, leaving them uninsured and vulnerable to medical expenses.
How a Health Insurance Assignment Order Works
A health insurance assignment order is typically included in the final divorce judgment and specifies:
- Who is responsible for maintaining the health insurance coverage
- The duration of the required coverage
- Whether the spouse receiving benefits must contribute to the cost of premiums
- How additional out-of-pocket medical expenses will be handled
Coverage for Children
California law requires both parents to provide for their children’s medical needs after a divorce. If one parent has health insurance available through their employer at a reasonable cost, the court will generally order that the children remain covered under that plan.
If employer-sponsored insurance is not available, the court may order one or both parents to obtain private insurance or enroll their children in a state-assisted program such as Medi-Cal or Covered California.
Coverage for a Former Spouse
A former spouse may be eligible to remain on the other spouse’s health plan temporarily under COBRA (Consolidated Omnibus Budget Reconciliation Act). COBRA allows an ex-spouse to continue receiving coverage for up to 36 months, but they must pay the full cost of the premiums.
Some divorce settlements may require one spouse to pay a portion or all of the COBRA premiums for a set period, particularly if the dependent spouse does not have immediate access to their own health benefits.
What Happens If the Insurance Policyholder Fails to Comply?
If the responsible party fails to maintain health insurance as ordered by the court, they may face legal consequences, including:
- Being held in contempt of court
- Being required to reimburse medical expenses paid out-of-pocket by the other spouse
- Additional fines or legal penalties for failing to comply with the court order
Courts take health insurance assignment orders seriously because they are put in place to protect children and dependents from financial and medical hardships. If the assigned party refuses to comply, legal action can be taken to enforce the order.
How to Request a Health Insurance Assignment Order
If you are in the process of a divorce and need a health insurance assignment order, an experienced family law attorney can help you:
- Determine the best approach for securing coverage for yourself and your children
- Negotiate the terms of the order as part of the divorce settlement
- File the necessary legal paperwork with the court
- Enforce the order if the responsible party fails to comply
At Law Office of Michael L. Fell, we understand that health care is a top priority for families going through a divorce. We are here to ensure that your legal rights are protected and that you and your children receive the coverage you need.
Contact Law Office of Michael L. Fell for Legal Guidance
If you are going through a divorce and need assistance with a health insurance assignment order, Law Office of Michael L. Fell can provide the legal guidance you need. Our team has extensive experience handling family law matters and ensuring that health insurance agreements are properly structured and enforced.
Call Law Office of Michael L. Fell at 949-585-9055 today to schedule a consultation and discuss your options for protecting your family’s health coverage.