| Rhode Island Has enacted the Rhode Island Health | | | | at the nominal divorce hearing, that the ex spouse is |
| Insurance Continuation act. This act allows a person to | | | | required to pay any additional premium over and |
| remain on their ex-husband or ex-wives health | | | | above the cost of a Single Plan or they will be |
| Insurance after Final Judgment of Divorce. | | | | removed from the insurance. These issues can get |
| Unfortunately, this act has been watered down by | | | | confusing if the cost for a family plan includes the |
| recent case law out of the Federal Court District of | | | | children and there is no additional expense for the |
| Rhode Island. The case of Duclos v. General | | | | spouse. Please consult with a Rhode Island Divorce |
| Dynamics Corp., 12 E.B.C. (BNA) 2648 (D.R.I. 1990) | | | | Lawyer about these issues. |
| stands for the proposition that The Rhode Island health | | | | The Rhode Island Health Insurance Continuation Act |
| Insurance Continuation act is Preempted by ERISA. | | | | R.I.G.L § 27-20.4-1 states: |
| ERISA is a Federal Statute. Under Common Law, if a | | | | "In the event of a final judgment of divorce, whether |
| federal statute and state statute relate to similar topics, | | | | absolute or otherwise, where one party to the divorce |
| Federal Law may preempt state law. The Federal | | | | was at the time of the entry of the judgment for |
| Preemption Doctrine is "a doctrine in law that allows a | | | | divorce a member of a health plan providing family |
| federal law to take precedence over or to displace a | | | | coverage * * * the person who was the spouse of |
| state law in certain matters of national importance (as | | | | the party prior to the entry of judgment for divorce |
| interstate commerce)" Duclos v. General Dynamics | | | | may remain eligible for continuing benefits under the |
| Corp., 12 E.B.C. (BNA) 2648 (D.R.I. 1990) ruled that the | | | | plan and health maintenance organization without |
| "Rhode Island statute requiring certain divorced | | | | additional premium or examination if the order is |
| spouses to be granted continuation health coverage | | | | included in the judgment when entered. The eligibility |
| without additional premiums was preempted by | | | | shall continue as long as the original member is a |
| ERISA..." Quoted from Charles Shulman, Esq. "EBEC | | | | participant in the plan or health maintenance |
| (Employee Benefits / Executive Compensation) Law | | | | organization and until either one of the following shall |
| Update" | | | | take place: (1) the remarriage of either party to the |
| Despite the Duclos ruling, many Rhode Island | | | | divorce, or (2) until a time as provided by the judgment |
| Employers allow an ex spouse to remain on health | | | | for divorce. If the person [eligible for continuing health |
| insurance coverage after Final Judgment of Divorce. | | | | care benefits] * * *becomes eligible to participate in a |
| Many employers are prohibiting ex spouses from | | | | comparable plan or health maintenance organization |
| coverage after final Judgment of Divorce relying on | | | | through his or her own employment, the continuation of |
| the Duclos case. My Understanding is that Blue Cross | | | | the original plan coverage shall cease." Section |
| Blueshield of Rhode Island allows an ex spouse to | | | | 27-20.4-1(a). (Emphasis added.) |
| remain on health insurance after Final Judgment of | | | | The Rhode Island Supreme Court interpreted the |
| Divorce. | | | | Rhode Island Health Insurance continuation act in |
| During the pendency of the divorce, the parties should | | | | L'Heureux v. L'Heureux: "The clear and unambiguous |
| determine the employers policy and procedures | | | | language of § 27-20.4-1 requires that health insurance |
| related to continuation of coverage after Final | | | | benefits, when provided for in a final decree of divorce, |
| Judgment of Divorce. If possible, they should seek the | | | | continue at no cost to the former spouse of the party |
| company policy in writing from the Companies benefits | | | | participating in the plan as long as the plan participant is |
| administrator. The Obligations of Rhode Island based | | | | still a member of the plan and until (1) either party |
| companies to comply with the Rhode Island Health | | | | remarries, or (2) a time provided by the judgment of |
| Insurance Continuation Act is beyond the scope of this | | | | divorce. Furthermore, the continuation of the original |
| Article. | | | | plan coverage shall cease when the former spouse |
| If a spouse will be remaining on his or her ex spouse's | | | | becomes eligible to participate in a comparable health |
| insurance then the following language should and must | | | | plan through his or her own employment." |
| be put on the record at the Rhode Island Nominal | | | | What are some of the health insurance options |
| Divorce Hearing and be memorialized into the Decision | | | | available to ex spouses after Final Judgment of |
| Pending Entry of Final Judgment as well as the Final | | | | Divorce in Rhode Island? |
| Judgment of Divorce: | | | | COBRA Heath Insurance may be a worthwhile option |
| "Plaintiff shall provide Defendant with Health Insurance | | | | for Ex Spouses after Final judgment of Divorce."Under |
| and Dental Insurance pursuant to the Rhode Island | | | | COBRA, employers must offer the option of continued |
| Health Insurance Continuation Act." | | | | health insurance coverage at group rates to qualified |
| This language should be put on the record and | | | | employees and their families who are faced with loss |
| memorialized into the Decision Pending and Final | | | | of coverage due to certain events." CRS Report for |
| Judgment of Divorce even if the employer will be | | | | Congress Health Insurance Continuation Coverage |
| removing the spouse after Final Judgment of Divorce! | | | | march 2005 "... When the qualifying event, however, is |
| The above described language incorporated into the | | | | a covered employee's divorce or legal separation, |
| Final Judgment of Divorce is usually interpreted by | | | | COBRA coverage lasts for thirty-six months." |
| Judges of The Rhode Island Family Court as meaning | | | | "COBRA provides that employers who provide their |
| the following: | | | | employees with medical coverage must provide |
| 1) If there is an additional expense over and above the | | | | continuation coverage to employees and their families |
| cost of a single plan for the ex spouse to remain | | | | who would otherwise lose coverage under the |
| covered by the health insurance plan then the ex | | | | employer's plan as a result of a qualifying event. |
| spouse must pay that additional amount or he / she | | | | Qualifying events include: (a) a covered employee's |
| may be removed from the Health Insurance policy. | | | | divorce or legal separation....Once a qualifying event |
| 2) If the person with Health Insurance loses their job, or | | | | occurs, the covered employee, his or her spouse, or |
| goes to another employer then the ex spouse will | | | | dependents seeking COBRA coverage must elect |
| probably lose health Insurance coverage. | | | | such coverage within 60 days of the occurrence of |
| 3) If either party (husband or wife) remarries than the | | | | the qualifying event and must pay the required |
| ex spouse may lose Health Insurance coverage. | | | | premiums. |
| It is usually a good idea to specifically put on the record | | | | |