Healthy, New York?

In a recent Blog posting I outlined how COBRA allows a divorced spouse to secure health insurance coverage through his or her former spouse’s employer. However, COBRA coverage is often unaffordable for many people. So what other options are available?

One option for many of the couples I work with is to legally separate but not file for divorce in order to stay on the family policy which they are keeping for the children, since there is usually no additional cost to keep a spouse on the plan. But sooner or later most couples need closure and are not willing to wait indefinitely to file for divorce.

Healthy New York is an option that allows uninsured workers to secure reduced-cost health insurance coverage. However, there are requirements that must be met to qualify:

• First, you must reside in New York.
• Second, you must be currently employed or have been employed within the past 12 months and your employer is not currently providing you with health insurance.
• Third, you must not have had health insurance for the past 12 months or lost it due to a divorce.
• Finally, you must meet certain income guidelines related to family size.

The good news about the Income Guidelines is that they increase for each member of your household and you can include your dependent children even if they do not live with you!

The guideline amounts effective as of January 1, 2012 allow you to have a gross (before tax) monthly income of up to $2,329 for one person, $3,152 for two and $3,977 for three people. This means that if you support 2 children you can obtain coverage with an annual income of $47,724! And the cost of the coverage can be as low as $200.00 per month, which is a lot less than it would cost to secure a private policy.

If you are staying married to keep health insurance, or are keeping an expensive COBRA policy, this may be an alternative to consider. It is certainly something that you and your spouse should discuss with your Divorce Mediator to see how your Agreement can be structured (or amended) to provide for such coverage.

For more information, including an application, go to www.dfs.ny.gov.

Feel free to ask any questions, to comment, or to request more information in the Comments Box below. Also, please forward this blog to anyone you know who would be interested in its topic.