Children in Divorced Families May Lose Health Coverage

More than 50% of California marriages end in divorce. The process is emotional for all involved, especially children. But a second type of victimization for kids - loss of their health insurance - is becoming increasingly common. For instance, a divorce decree calls for the husband to carry the child or kids on his group health care insurance policy. All seems fine until the husband is laid off. An option exists. The ex-employee can take advantage of COBRA which is up to 102% of the insurance coverage’s original cost. Regrettably, this may be less than praiseworthy as an insurance solution, especially if the cost actually increases.

Another scenario: The husband is paying for the child on his group plan but mom takes the child into another state. This simple act can lead to a myriad of problems. The group plan may not cover out of state. If the insurance policy is an Health Maintenance Organization (HMO), PPO, or some other managed care hybrid, doctors or heathcare facilities “in network” may not exist. The cost of care would be certain to increase.

Planning may be the solution to a lot of losses in coverage for kids of divorced parents. If both parents consult with their respective attorneys and agree to prioritize their child’s (or children’s) health care, a satisfied ending may still ensue. Perhaps the best solution is to provide separate policies for the children, with funding derived from a source other than an employer. A lot of health insurers that care exclusively to Californians have established workable programs to address such contingencies. So-called “child-only” programs can often be bought at very reasonable rates.