Seperated need answers to Insurance law

[alaska123]

What is the name of your state (only U.S. law)? Alaska
I am separated and want to remove my soon to be ex spouse off my health insurance policy.

My HR person told me I can't and it is against the law. I can't find anywhere under Alaska Statues where I have to keep her on the policy if we are married or not.

Just want some clarification.

 

[ecmst12]

You are looking at the wrong laws. This is federal law, part of the tax code, section 125 concerning employer-sponsored group health plans specifically. The IRS cares because of the tax-exempt status of your premiums. You can only add or remove a dependent during open enrollment or within 30 days of a qualifying life event. A legal separation is not a qualifying life event. A DIVORCE would be a qualifying event, but you are not divorced yet. You can remove her at the next open enrollment, if your divorce is not final before then.

 

[mistoffolees]

You are looking at the wrong laws. This is federal law, part of the tax code, section 125 concerning employer-sponsored group health plans specifically. The IRS cares because of the tax-exempt status of your premiums. You can only add or remove a dependent during open enrollment or within 30 days of a qualifying life event. A legal separation is not a qualifying life event. A DIVORCE would be a qualifying event, but you are not divorced yet. You can remove her at the next open enrollment, if your divorce is not final before then.

OP stated that they were separated. If they are legally separated, that's probably OK (although I would still ask an attorney). If they are NOT legally separated and just moved out, then I would not recommend dropping the husband from the plan. If he gets sick and racks up some huge medical bills, she could be responsible for half.

 

[LdiJ]

OP stated that they were separated. If they are legally separated, that's probably OK (although I would still ask an attorney). If they are NOT legally separated and just moved out, then I would not recommend dropping the husband from the plan. If he gets sick and racks up some huge medical bills, she could be responsible for half.

I agree, even with a legal separation I think it would be foolish to remove a spouse from medical insurance before a divorce is final. Even if a judge wouldn't hold you responsible for the medical bills, it could mess up the property settlement in other ways.

 

[ecmst12]

A legal separation is NOT considered a qualifying life event. A divorce is. I think I already said that. Separations can be temporary, they are not legally binding, the two people are still married and may still reconcile. When a divorce is final, then it's final and if they want to get back together they would have to get married again to make it legal. Legal separation means nothing when it comes to removing the spouse from the insurance, it is NOT enough and it can't be done.

The list of qualifying events is short, clear, and ironclad.

 

[mistoffolees]

A legal separation is NOT considered a qualifying life event. A divorce is. I think I already said that. Separations can be temporary, they are not legally binding, the two people are still married and may still reconcile. When a divorce is final, then it's final and if they want to get back together they would have to get married again to make it legal. Legal separation means nothing when it comes to removing the spouse from the insurance, it is NOT enough and it can't be done.

The list of qualifying events is short, clear, and ironclad.

No one ever said that legal separation would be a qualifying event.

However, there are enrollment periods when it is OK to add or subtract people even without a qualifying event. Thus, it would be perfectly legal for OP to remove her husband from the insurance at an open enrollment period - but it would be a bad idea.

 

[ecmst12]

I did mention that too. Maybe I misunderstood what you were trying to say though.

 

[Ohiogal]

A legal separation is NOT considered a qualifying life event. A divorce is. I think I already said that. Separations can be temporary, they are not legally binding, the two people are still married and may still reconcile. When a divorce is final, then it's final and if they want to get back together they would have to get married again to make it legal. Legal separation means nothing when it comes to removing the spouse from the insurance, it is NOT enough and it can't be done.

The list of qualifying events is short, clear, and ironclad.

A legal separation can very much be LEGALLY binding. They are in Ohio. However legal separations require court orders and hearings and what not.

 

[ecmst12]

Still doesn't constitute a qualifying event according to the IRS though.

 

[mistoffolees]

Still doesn't constitute a qualifying event according to the IRS though.

No one said it is. However, your repeated insistence prompted me to check.

According to the IRS, legal separation IS a qualifying event for starting COBRA coverage.
COBRA Insurance FAQ's

This doesn't specifically state that a person can terminate their spouse in the event of legal separation, but it DOES say that if legal separation results in loss of coverage that COBRA kicks in, so that's a pretty strong implication.

Throughout the COBRA statutes, it specifies 'divorce or legal separation' as though they are equivalent in terms of COBRA, at least.

 

[LdiJ]

No one said it is. However, your repeated insistence prompted me to check.

According to the IRS, legal separation IS a qualifying event for starting COBRA coverage.
COBRA Insurance FAQ's

This doesn't specifically state that a person can terminate their spouse in the event of legal separation, but it DOES say that if legal separation results in loss of coverage that COBRA kicks in, so that's a pretty strong implication.

Throughout the COBRA statutes, it specifies 'divorce or legal separation' as though they are equivalent in terms of COBRA, at least.

The federal tax code laws on insurance benefits are generated more towards the employer than towards the employee. The are designed to prevent the employer from mucking around with their employee's (and the employee's family's) insurance. Hence, why insurance cannot be cancelled unless there is a qualifying event (under state law) or during an open enrollment period. The employer isn't allowed to break those rules therefore the employee cannot break them either.

However, in many states its also a big no-no to cancel insurance coverage while separated or pending a finalization of a divorce, under separate state law.

 

[mistoffolees]

The federal tax code laws on insurance benefits are generated more towards the employer than towards the employee. The are designed to prevent the employer from mucking around with their employee's (and the employee's family's) insurance. Hence, why insurance cannot be cancelled unless there is a qualifying event (under state law) or during an open enrollment period. The employer isn't allowed to break those rules therefore the employee cannot break them either.

However, in many states its also a big no-no to cancel insurance coverage while separated or pending a finalization of a divorce, under separate state law.

That misses the entire point. COBRA clearly considers LEGAL separation as a qualifying event.

 

[ecmst12]

But Cobra really is an entirely separate law.

 

[mistoffolees]

But Cobra really is an entirely separate law.

Yes, but the source I gave you said that legal separation can be a cause for termination of health insurance coverage, implying that you are wrong.

But feel free to document your claim that legal separation is not a qualifying event for termination of insurance.