Key Takeaways:

1. Understanding FEHB eligibility and coverage rules is crucial for managing health insurance during and after divorce.
2. Taking proactive steps can ensure continued FEHB coverage and proper adjustments to enrollment and benefits post-divorce.

How to Handle FEHB Coverage During and After Divorce

Navigating health insurance during and after a divorce can be complex, especially for federal employees covered under the Federal Employees Health Benefits (FEHB) program. Ensuring that you and your dependents maintain health coverage throughout this transition is essential. This article provides a comprehensive guide on handling FEHB coverage during and after divorce, covering eligibility and coverage rules, steps to maintain coverage during divorce proceedings, options for continuing coverage post-divorce, and adjusting enrollment and benefits.

Eligibility and Coverage Rules for FEHB

Before addressing the specific steps to manage FEHB coverage during and after divorce, it’s essential to understand the basic eligibility and coverage rules of the FEHB program.

Who is Eligible for FEHB?

1. Federal Employees: Current federal employees are eligible for FEHB coverage, which includes a range of health insurance plans.
2. Retirees: Federal retirees who were enrolled in FEHB at the time of retirement can continue their coverage.
3. Dependents: Spouses and children under the age of 26 are eligible for coverage under the employee’s or retiree’s plan.

FEHB Coverage During Marriage

During marriage, the federal employee or retiree typically covers their spouse and eligible dependents under their FEHB plan. The plan includes medical, dental, vision, and prescription benefits, providing comprehensive health coverage for the entire family.

FEHB Coverage After Divorce

After a divorce, the former spouse may lose eligibility for FEHB coverage. However, there are specific provisions and options available to ensure continued health coverage for the ex-spouse and dependents.

Maintaining FEHB Coverage During Divorce

Maintaining FEHB coverage during divorce proceedings requires proactive management to ensure that there are no lapses in health insurance for the employee and their dependents.

Notifying HR and Plan Administrator

1. Inform Your HR Department: Notify your Human Resources (HR) department about the pending divorce. They can provide guidance on maintaining coverage and any necessary paperwork.
2. Contact Your FEHB Plan Administrator: Reach out to your plan administrator to discuss the impact of the divorce on your coverage and any required actions to maintain it.

Temporary Continuation of Coverage (TCC)

1. Eligibility for TCC: If the divorce is finalized and your ex-spouse loses eligibility for FEHB coverage, they may be eligible for Temporary Continuation of Coverage (TCC). TCC provides continued health coverage for up to 36 months.
2. Applying for TCC: Your ex-spouse must apply for TCC within 60 days of losing eligibility. This coverage is similar to COBRA in the private sector and can help bridge the gap until other insurance is obtained.

Ensuring Dependent Coverage

1. Children’s Coverage: Ensure that your children remain covered under your FEHB plan. Divorce does not impact their eligibility as long as they are under 26.
2. Documentation: Provide any necessary documentation, such as custody agreements, to your HR department and FEHB plan administrator to maintain dependent coverage.

Continuing FEHB Coverage After Divorce

After the divorce is finalized, there are specific steps and options to continue FEHB coverage for the employee, ex-spouse, and dependents.

Employee’s Coverage

1. Review Your Plan: After the divorce, review your FEHB plan to determine if it still meets your needs. You may want to change your coverage option or switch to a different plan during the next Open Season.
2. Update Enrollment: Update your FEHB enrollment to reflect the change in marital status. This may involve switching from a family plan to a self-only or self-plus-one plan.

Ex-Spouse’s Coverage

1. TCC Enrollment: Ensure your ex-spouse has enrolled in TCC if they choose to maintain FEHB coverage. They will be responsible for the full premium, including the employee and government contributions, plus a 2% administrative fee.
2. Other Coverage Options: If TCC is not viable, explore other health insurance options for your ex-spouse, such as coverage through their employer, the Health Insurance Marketplace, or state-based programs.

Dependent Coverage

1. Maintaining Coverage for Children: Ensure your children continue to have FEHB coverage. If they are covered under your plan, no action is required unless you change your enrollment option.
2. Dual Coverage: If both parents are federal employees, consider the most cost-effective way to provide coverage for your children, which may involve coordinating benefits between two FEHB plans.

Adjusting FEHB Enrollment and Benefits Post-Divorce

Adjusting your FEHB enrollment and benefits after a divorce is crucial to ensure that your coverage aligns with your new circumstances.

Open Season Changes

1. Annual Open Season: Take advantage of the annual Open Season to review and make changes to your FEHB enrollment. This is an opportunity to switch plans, change coverage options, and update your beneficiary information.
2. Special Enrollment Period: A divorce qualifies as a life event that allows you to make changes to your FEHB coverage outside of the Open Season. Notify your HR department and plan administrator promptly to take advantage of this special enrollment period.

Updating Beneficiary Information

1. Life Insurance Beneficiaries: Update your Federal Employees’ Group Life Insurance (FEGLI) beneficiaries to reflect your new circumstances. Ensure that the correct individuals are listed to receive benefits.
2. Retirement and Thrift Savings Plan (TSP) Beneficiaries: Update the beneficiaries for your retirement benefits and TSP account to ensure that your assets are distributed according to your wishes.

Exploring Additional Benefits

1. Flexible Spending Accounts (FSA): If you participate in a health care or dependent care FSA, review and adjust your contributions based on your new expenses and coverage needs.
2. Dental and Vision Insurance: Consider enrolling in or adjusting your Federal Employees Dental and Vision Insurance Program (FEDVIP) coverage to meet your needs post-divorce.

Seeking Professional Advice

1. Legal Counsel: Consult with a family law attorney experienced in federal benefits to navigate the complexities of divorce and FEHB coverage. They can provide tailored advice and ensure compliance with legal requirements.
2. Financial Advisor: Engage a financial advisor to help you adjust your financial plan, including health insurance, retirement savings, and budgeting, to reflect your new circumstances.

Conclusion: Managing FEHB Coverage During and After Divorce

Handling FEHB coverage during and after a divorce requires careful planning and proactive management. By understanding eligibility and coverage rules, maintaining coverage during divorce proceedings, exploring options for continuing coverage post-divorce, and adjusting enrollment and benefits, federal employees can ensure they and their dependents remain covered. Taking these steps, along with seeking professional advice, can help you navigate this challenging transition while safeguarding your health insurance and financial well-being.

Contact Information:
Email: [email protected]
Phone: 2129517376

Bio:
M. Dutton and Associates is a full-service financial firm. We have been in business for over 30 years serving our community. Through comprehensive objective driven planning, we provide you with the research, analysis, and available options needed to guide you in implementing a sound plan for your retirement. We are committed to helping you achieve your goals. Visit us at MarvinDutton.com . Tel. 212-951-7376: email: [email protected].