He wants her off his insurance

System · October 2003

My GM is in the midst of a very nasty divorce. Of course he wants to stop paying for her health benefits. I am fairly positive that there are obstacles to doing this. I am dreading having to tell him so because (as we say around the office pertaining to him) busts a rivet when the subject of his divorce is brought up (always by him though, we just have to deal with the results).
What options can I give him?
any advice to prevent rivet busting would be GREATLY appreciated

deniseE · October 2003

WOW.

I probably would want some documentation showing that he is not obligated to maintain the insurance. Many divorce settlements stipulate responsibilities for insurance, medical bills, kids...even the family dog!!

I doubt the employer could be liable if she was removed. You may just end up with a nasty gram from her attorney telling you to put her back on.

The important part is to not find yourself in the middle of this. Requiring documentation before making changes might be the best for everyone. 8-|

KSimonton · October 2003

Just my quick two cents: Most carriers won't allow arbitrary removal of dependents. There must be a "qualifying event" i.e. divorce, supported by a divorce decree. An HR person cannot call up the carrier and just say "take this person off". If the divorce decree says that he doesn't have to pay for her anymore, send the finalized decree to your carrier. Also, COBRA is only offered when the company has 25 or more employees.

Thanks for letting me share.

Balloonman · October 2003

Just tell him you would be happy to, as soon as the divorce is final. There are potential significant financial liabilities to him if he drops her prior to the divorce.
This was a topic in the past that had lots of good input.
My $0.02 worth.
DJ The Balloonman

Tony Kessler · October 2003

deez,
Balloonman is right. There have been some interesting discussions on this subject. I just did a search -- in the search function below left -- for "divorce insurance" (now there's a concept) and came up with a number of links to previous discussions. Hope this helps. tk

Tony Kessler, director of editorial
M. Lee Smith Publishers LLC
(615) 661-0249 ext. 8068

LindaS · October 2003

If your GM is "in the midst" of the divorce, I would inform him that terminating the spouse from the insurance is NOT a good idea. What will probably happen is that the spouse will obtain a court order to be placed back on the insurace until the divorce is final. As other posters have said, there have been some good discussions on this subject in the past.

Good luck being the bearer of bad news!

marc · October 2003

I will admit right off the bat that I did not read the other threads about this. That being said, if the ee is paying for the dependent coverage and withdraws approval for the deduction from his check - that would probably take the issue out of your hands. I think there are some Cobra options you would extend the dependent. If any other fallout occurs, the ee would have to deal with the consequences. If the company is paying for the coverage, I am sure you have a different set of issues as addressed above.

bamahr · October 2003

I have been through this several times. If they want to drop the spouse during an open-enrollment and I know they are in the process of a divorce - I will do it with a notarized statement from the spouse acknowledging the termination of their coverage. I then on the advice of my carrier offer them cobra. If they cannot provide the notarized statement, I will not do it until I have a divorce decree. Good Luck!

Pork · October 2003

Very professionally give him the appropriate form to accomplish his desired aims. He has every right as the employee to change and provide medical coverage, as he deems appropriate to all or none of his family members, until such times as the COURT DECIDES OTHERWISE. AT WHICH TIME YOU WILL VERY PROFESSIONALLY re-enroll the family members that the court, "so deems as necessary".

You have no need to be concerned, it really is not the business of the company until the court makes it your business. When it is the court's business it is, likewise, your business.

So smile and get the blank form to him and offer your help and attention so that he gets it done right the first time and you don't have to face him any more on this issue!!!

PORK

Sunny · October 2003

Have you checked with your carrier? Mine won't remove a "divorcing" spouse without documentation - and that could be your way of handling the GM. Just refer him to the carrier. There are some significant penalties to the Company for removing someone from insurance without offering COBRA - so if he goes ahead and takes her off make sure you send the paperwork.

Good luck - he sounds like a charmer.

Rob S · October 2003

If you have a Section 125 plan (employee portion of the premium tax free), then you must have a qualifying event or annual open enrollment (IRS rules, not necessarily the insurance company). HMO's also often will not allow you to remove except for qualifying event or open enrollment period.

Good luck,
Rob

He wants her off his insurance

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