Divorce and Health Insurance — Your Options Explained

If you're covered under your spouse's employer health insurance, divorce means losing that coverage. This affects roughly 115 million Americans who get health insurance through a spouse's employer plan. The loss of coverage qualifies as a "qualifying life event," giving you a 60-day special enrollment window to find a new plan. The question is which option fits your situation and budget.

Estimate the full financial picture of divorce with the Divorce Financial Calculator.

Your Four Main Options

Option	Monthly Cost	Duration	Best For
COBRA	$600–$2,000	Up to 36 months	Keeping same doctors/network temporarily
ACA Marketplace	$200–$800 (after subsidies)	Ongoing	Most divorced individuals
Own employer plan	Varies	Ongoing	If you're employed with benefits
Medicaid	Free	Ongoing (if eligible)	Low-income individuals

COBRA: The Immediate Bridge

COBRA lets you continue your ex-spouse's employer plan for up to 36 months after divorce. The catch: you pay the full premium — both the employee and employer portions — plus a 2% admin fee.

Family Size	Typical COBRA Monthly Cost
Individual	$650–$900
Individual + 1 child	$1,200–$1,600
Individual + 2 children	$1,500–$2,000

When COBRA makes sense:

You're mid-treatment and need to keep your doctors/hospital
Your deductible is already met for the year (switching resets it)
You only need a few months of coverage while transitioning
The plan's network or benefits are exceptionally good

When COBRA doesn't make sense:

The cost exceeds 8–10% of your income
An ACA marketplace plan offers similar coverage for less
You qualify for Medicaid based on your new single income

You have 60 days from the date of divorce to elect COBRA, and coverage is retroactive to the date you lost the employer plan. But you must pay all retroactive premiums.

ACA Marketplace: Usually the Best Value

For most people post-divorce, an ACA marketplace plan is the most cost-effective option. Divorce is a qualifying life event, giving you a 60-day special enrollment window on healthcare.gov.

Key advantages:

Premium subsidies based on your individual income (not your ex's)
Cost-sharing reductions for Silver plans if income is below 250% FPL
No pre-existing condition exclusions
Coverage for your children (shared with co-parent)

Your Income	Estimated Monthly Premium (Silver plan)
Under $20,000	$0–$50 (heavy subsidies, may qualify for Medicaid)
$30,000	$100–$200
$50,000	$250–$400
$75,000	$400–$600
$100,000+	$500–$800 (reduced or no subsidies)

Negotiating Health Insurance in the Divorce Agreement

Health insurance costs should be part of divorce negotiations:

Include COBRA costs in the settlement. If your ex-spouse was the plan holder, negotiate for them to cover or share COBRA costs for a transition period (6–12 months is common).

Factor insurance into support calculations. If you need to buy individual coverage, that $500–$800/month cost should be considered when determining spousal support amounts.

Children's coverage. The divorce agreement should specify which parent provides health insurance for the children. Courts typically assign this to the parent with the better/cheaper employer plan. The cost may be factored into child support calculations.

Timeline: What to Do and When

When	Action
Before filing	Understand your current plan benefits and network
At filing	Research ACA marketplace options and costs
At divorce decree	You have 60 days for COBRA election and 60 days for marketplace special enrollment
Within 30 days	Enroll in new coverage to avoid a gap
January (open enrollment)	Switch to a marketplace plan if currently on COBRA

Don't wait until your coverage lapses. Start researching options as soon as divorce proceedings begin, and have a plan ready for the day the decree is final.

For the complete financial planning approach, see Financial Planning for Divorce — Checklist. For understanding the total costs, read Hidden Costs of Divorce. And for the recovery path afterward, check Rebuilding Finances After Divorce.