Medicare and Divorce

Divorce can affect many aspects of your finances, but can it affect Medicare? In some situations, it can.  Most people don't think about Medicare when going through a divorce, but changes in health insurance coverage, household income, and even an ex-spouse's work history can sometimes affect your Medicare options. Here are some rules that may help you avoid surprises and make informed decisions.

Can I qualify for Medicare based on my ex-spouse's work history?

Possibly.  If you were married for at least 10 years, are currently unmarried, and your former spouse earned at least 40 quarters (about 10 years) of Social Security work credits while you were married, you may qualify for premium-free Medicare Part A based on your ex-spouse's work record.  Some additional good news is that your ex-spouse does not need to know, and their benefits are not reduced.

What happens if I lose my ex-spouse's employer health coverage?

If you are under age 65 and lose coverage because of a divorce, continuing coverage through COBRA may be a reasonable temporary option until you become eligible for Medicare. However, if you are age 65 or older, COBRA is generally not considered active employer coverage for delaying Medicare Part B enrollment without penalty. Many people mistakenly believe they can wait until COBRA ends before enrolling in Part B, which can result in late enrollment penalties and gaps in coverage.

Can divorce affect my Medicare premiums?

Maybe.  Some people with higher incomes pay an additional amount for Medicare Part B and Part D called the Income-Related Monthly Adjustment Amount, better known as IRMAA.  Medicare usually looks at your tax return from two years ago to determine whether you owe IRMAA.  This means if you were married at the time, and filed jointly, determination will be made on your joint income.

If your income has decreased because of a divorce, you may be able to ask Social Security to reduce your Medicare premiums by filing Form SSA-44, Medicare Income-Related Monthly Adjustment Amount – Life-Changing Event.  Divorce is one of the life-changing events that may allow Social Security to reconsider your Medicare premiums using your current income rather than an older tax return.

Do I need to do anything if I am already enrolled in Medicare?

Usually, no.  If you already have Medicare, divorce itself does not change your Medicare eligibility.  However, you should notify Social Security if your marital status changes and review whether your income, health coverage, or enrollment decisions may be affected.

The Bottom Line

Divorce does not usually change your Medicare eligibility, but it can affect how you qualify for premium-free Part A, what you pay for Medicare Part B, and when you need to enroll in Part B. Understanding these rules can help you avoid penalties and make informed decisions during an already stressful time.  If you have any questions or need guidance, don’t hesitate to call. 

Diane Andree  631-337-3625

ABC Medicare Plans Broker

Medicare and Divorce