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When coverage has been eliminated or reduced in anticipation of a divorce, cobra must be offered to the spouse beginning with the date of the actual divorce, even though the spouse was not covered immediately before the divorce and did not lose coverage because of the divorce. This can help you avoid paying for coverage you no longer need. An employee may be allowed to drop their spouse from coverage during open enrollment
However, the employee should follow any court orders in place, and the employer should be mindful of the fact that there are cobra implications when the employee does this in anticipation of divorce. In the case of divorce, you may be able to remove your spouse from your insurance coverage within 30 days of the divorce decree becoming final In that case, judy is no longer an eligible spouse and may be entitled to cobra even though they have not yet divorced or legally separated because she would otherwise lose health coverage as a result of this change in status
Also, employers should check this in advance with their carrier.
When an employee removes a spouse during open enrollment, even in anticipation of a divorce, that alone typically does not create a right to elect cobra continuation coverage Generally, you can only drop your spouse from your health insurance if there is an open enrollment period or you're experiencing a qualifying event, such as getting divorced or buying a new health insurance plan. A spouse’s open enrollment period is generally not considered a qualifying life event for your own health coverage If your spouse makes a change during their open enrollment that results in a loss of coverage for you, that specific loss of coverage is a qualifying event.
You’ll have to wait until the next open enrollment period It’s crucial to remember that dropping your spouse from coverage occurs only during open enrollment or within 30 days of qualifying life events, like divorce. Yes, you can typically remove your husband from your health insurance during the open enrollment period, even if you have not initiated separation or divorce proceedings.
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