When the dust settles on a divorce, one of the most critical—and easily overlooked—tasks is securing your own health insurance. Until your decree is final, you may remain on your spouse’s plan; once it’s signed, you suddenly become “non–policyholder” and lose that coverage. Missing a deadline or choosing the wrong plan can lead to gaps in care, sky-high medical bills, or even go uninsured for months. Below, we pinpoint the Top 7 Mistakes to Avoid When Choosing Health Insurance After a Divorce Settlement, so you can focus on rebuilding your life—without worrying about your next doctor’s bill.

Mistake 1: Waiting Too Long to Explore New Coverage Options

After divorce, timing is everything.

• Why it matters: Most employer-sponsored and individual plans treat divorce as a Qualifying Life Event (QLE), triggering a Special Enrollment Period (SEP)—but only if you act promptly.
• What happens if you delay: Miss your SEP window and you’re stuck until the next Open Enrollment Period (often months away), leaving you uninsured or forced into COBRA at full cost.

According to Avera Health Plans, losing coverage through divorce automatically triggers a SEP under Affordable Care Act–compliant plans—as long as you apply within 60 days of your divorce decree (Is Divorce a Qualifying Life Event).

Mistake 2: Ignoring Special Enrollment Period Rules

It’s not enough to know a SEP exists—you must understand its parameters:

1. Count your days carefully: Some employers give you only 30 days to switch, while ACA plans allow 60 days.
2. Pick wisely: You may qualify for Medicaid or CHIP if your income drops.

Why it matters: Failing to meet the SEP deadline pushes your only option to the next annual enrollment—potentially nine months away—which can leave you footing ER bills out of pocket.

Mistake 3: Overlooking COBRA Costs and Timelines

COBRA lets you temporarily stay on your ex-spouse’s employer plan—up to 18 months (or even 36 months under certain state laws). But there’s a catch:

• You pay the full premium (both your share and your former spouse’s), up to 102 % of the plan’s cost.
• COBRA deadlines: You generally have 60 days from your divorce decree to elect COBRA, then another 45 days to pay your first premium.

“A spouse has the option to stay on their former spouse’s employer-provided health plan for up to eighteen (18) months after the divorce decree is signed,” notes State 48 Law Firm—though those premiums can be punishing (State 48 Law Firm).

Key question: Can you afford it? COBRA is often more expensive than Marketplace plans—especially if you don’t receive an employer subsidy.

Mistake 4: Not Comparing Marketplace Plans Thoroughly

The Health Insurance Marketplace can be a lifesaver—subsidies often make coverage more affordable than COBRA. But not all Marketplace plans are created equal:

• Deductibles vs Premiums: A low monthly premium often means a high deductible.
• Out-of-Pocket Maximums: This cap is your safety net—make sure it won’t wipe out your savings if you face serious illness.
• Provider Networks: Check that your current doctors and preferred hospitals participate.

Action step: Use the Marketplace “compare plans” tool side-by-side—and factor in subsidy eligibility based on your new, single-person household income.

Mistake 5: Failing to Consider Provider Networks

A plan might look affordable on paper—but if your doctors or local hospital aren’t in-network, you’ll pay full price:

• Networks change yearly—and divorce often leads you to reevaluate which specialists you need.
• Out-of-Network Penalties: Some plans charge as much as double for seeing an out-of-network provider.

According to Super Lawyers, employer-sponsored coverage “will likely cost less out-of-pocket than other types of health insurance coverage,” but only if your preferred providers participate (Super Lawyers).

Quick check: Before you commit, call your doctor’s office and verify which insurance IDs they accept—then confirm with the carrier.

Mistake 6: Neglecting Prescription Drug Coverage

Medications can be your largest ongoing health cost. Don’t assume that because a plan covers your doctor’s visits, it’ll cover your prescriptions affordably:

1. Formulary Tiers: Most plans categorize drugs into tiers (generic, preferred brand, non-preferred brand).
2. Mail-Order vs Retail: Some carriers offer significant savings if you order a 90-day supply by mail.
3. Specialty Drugs: If you require high-cost medications (e.g., biologics), check prior-authorization rules and specialty pharmacy requirements.

Real-world implication: A plan with a $20 generic drug copay might seem attractive until you discover your life-saving medication is relegated to a $250 specialty tier.

Mistake 7: Neglecting to Budget for Hidden Costs and Premiums

Your “sticker price” premium is just the beginning:

• Payroll-Deducted Subsidies: If you qualify for an employer subsidy, see how it’s applied to your paycheck. After divorce, that subsidy disappears.
• Premium Tax Credits: On the Marketplace, subsidies are paid as advanced premium tax credits (APTC). A miscalculation of your new income can result in an unexpected tax bill.
• HSA and FSA Considerations: If you had access to a Health Savings Account or Flexible Spending Account, divorce can impact your account ownership and pre-tax contributions.

Research shows women face a heightened risk of losing insurance altogether after divorce—leading to delayed care and worse health outcomes (PMC: Divorce and Women’s Risk).

Bottom line: Factor in every dollar—from deductibles and copays to mail-order pharmacy fees—when determining which plan fits your post-divorce budget.

At a Glance: Coverage Options Compared

Key Takeaways and Next Steps

1. Start Early: As soon as divorce becomes likely, research your options and note all deadlines.
2. Compare Holistically: Weigh premiums, deductibles, networks, drug formularies, and account contributions together.
3. Lean on Experts: An experienced insurance broker or family law attorney can embed coverage obligations into your settlement—ensuring you leave the marriage without losing your health safety net.
4. Document Everything: Save emails, notices, and plan summaries. These will be invaluable if there’s a dispute or if you need to argue coverage under a QMCSO for your children.

Divorce may close one chapter—but by avoiding these seven pitfalls, you’ll ensure it doesn’t leave you vulnerable to medical debt or uninsured gaps. With careful planning, you can secure a health plan that supports your new life—so you can focus on moving forward with confidence.