Health Care Benefits in Military Divorce

Tampa Military Divorce Lawyers for TRICARE, CHCBP, and Former Spouse Health Care Issues

Health care can be one of the most important issues in a military divorce. Many military spouses have relied on TRICARE for years. Some have moved repeatedly for the servicemember’s career, stayed home with children during deployments, worked part-time, or given up employer-sponsored health insurance because the family had military medical coverage.

When divorce becomes final, that coverage may change immediately.

At Mockler Leiner Law, P.A., our Tampa military divorce lawyers represent servicemembers, veterans, military retirees, reservists, National Guard members, and military spouses in Florida divorce and family law cases involving health care benefits, TRICARE, CHCBP, child support, alimony, military retired pay, Survivor Benefit Plan coverage, and other military benefits.

A military spouse should not assume that TRICARE continues after divorce. A servicemember should not assume that a Florida divorce court can simply order the military to keep a former spouse covered. Military health care benefits are controlled by federal law. A Florida divorce judgment can address support, alimony, insurance costs, children’s coverage, and settlement obligations, but it cannot create TRICARE eligibility if the former spouse does not meet the federal requirements.

That is why health care should be analyzed before a military divorce is finalized.

Why Health Care Is Different in Military Divorce

In a civilian divorce, a spouse may lose coverage under the other spouse’s employer-sponsored health plan when the divorce becomes final. The former spouse may then need COBRA, employer coverage, Marketplace insurance, Medicaid, Medicare, or another private plan.

Military divorce has different rules because health care benefits may involve TRICARE, DEERS, military ID cards, commissary and exchange privileges, CHCBP, military retirement status, and federal former-spouse eligibility rules.

A military divorce involving health care may require analysis of:

• Whether the spouse qualifies as a 20/20/20 former spouse;

• Whether the spouse qualifies as a 20/20/15 former spouse;

• Whether the spouse can purchase CHCBP;

• Whether CHCBP may be available for 36 months or longer;

• Whether the spouse has employer-sponsored health insurance;

• Whether the spouse intends to remarry;

• Whether the spouse is close to a federal eligibility threshold;

• Whether the children remain eligible for TRICARE;

• Whether stepchildren lose eligibility after divorce;

• Whether a child support order must address health insurance;

• Whether uncovered medical expenses should be allocated;

• Whether alimony should account for the cost of replacement coverage;

• Whether the parties should address deductibles, copays, prescriptions, and out-of-network expenses; and

• Whether health care costs affect settlement strategy.

Health care is not just a benefits issue. It can affect alimony, child support, equitable distribution, settlement value, and the financial survival of a former spouse after divorce.

What Happens to TRICARE When the Divorce Is Final?

In most cases, a spouse’s TRICARE eligibility as a dependent spouse ends when the divorce becomes final unless the former spouse qualifies under one of the federal former-spouse rules. The final judgment of dissolution of marriage is usually the event that changes the spouse’s status.

This can be a serious problem when the spouse has ongoing medical conditions, prescriptions, scheduled surgery, mental health treatment, therapy, cancer treatment, pregnancy-related care, or children who depend on the spouse to coordinate medical care.

If the former spouse continues to use TRICARE after losing eligibility, TRICARE may seek repayment for benefits paid after eligibility ended. A spouse should not rely on an old military ID card, an outdated DEERS record, or the fact that the pharmacy or doctor’s office still accepts the card. Eligibility must be confirmed.

Before finalizing a military divorce, both parties should understand exactly what happens to coverage on the date of divorce.

The 20/20/20 Former Spouse Rule

A former spouse may qualify for continuing TRICARE coverage under the 20/20/20 rule if all three requirements are met:

1. The servicemember has at least 20 years of creditable military service toward retirement pay;

2. The marriage lasted at least 20 years; and

3. The marriage and the creditable military service overlapped by at least 20 years.

A former spouse who qualifies under the 20/20/20 rule may remain eligible for TRICARE after the divorce, subject to continued eligibility requirements. This is the most valuable health care category for a former military spouse.

The former spouse will generally be listed in DEERS under the former spouse’s own Social Security number or DoD Benefits Number rather than under the servicemember’s sponsor number. The former spouse should promptly update DEERS after the divorce and obtain the correct identification card.

A 20/20/20 former spouse may lose eligibility if the former spouse remarries. The former spouse may also lose eligibility if covered by an employer-sponsored health plan. These issues should be discussed before the divorce is finalized and before the former spouse makes employment, remarriage, or insurance decisions that may affect coverage.

A Florida divorce judgment should not simply say that a spouse “gets TRICARE for life.” The judgment should be clear about what the parties understand, but TRICARE eligibility is determined by federal rules, not by the parties’ agreement.

The 20/20/15 Former Spouse Rule

A former spouse may qualify under the 20/20/15 rule if:

1. The servicemember has at least 20 years of creditable military service toward retirement pay;

2. The marriage lasted at least 20 years; and

3. The marriage and the creditable military service overlapped by at least 15 years, but less than 20 years.

For most modern divorces, a 20/20/15 former spouse receives one year of TRICARE eligibility from the date of divorce or annulment, assuming the other eligibility requirements are met.

This one-year transition period can be extremely important. It may give the former spouse time to find employment, obtain employer-sponsored insurance, purchase Marketplace coverage, apply for Medicare or Medicaid if eligible, or transition to CHCBP.

However, one year passes quickly. A spouse who qualifies under the 20/20/15 rule should not wait until the coverage is about to expire before looking for the next option.

Former Spouses Who Do Not Qualify Under 20/20/20 or 20/20/15

Many military spouses do not qualify for continued TRICARE after divorce. This is common when:

• The marriage lasted less than 20 years;

• The servicemember served less than 20 years;

• The marriage and military service did not overlap long enough;

• The servicemember was medically retired before 20 years;

• The spouse married the servicemember after much of the service had already occurred;

• The spouse was covered during the marriage but does not meet federal former-spouse rules; or

• The case involves a younger servicemember who is still far from retirement.

If the former spouse does not qualify under the 20/20/20 or 20/20/15 rules, TRICARE coverage as a spouse usually ends when the divorce becomes final. The spouse should then evaluate other health insurance options, including CHCBP, employer coverage, COBRA, the Health Insurance Marketplace, Medicaid, Medicare, private insurance, or coverage through a new spouse if remarriage occurs.

A military divorce lawyer should identify this issue early. Health insurance can be one of the most expensive post-divorce needs.

Continued Health Care Benefit Program

The Continued Health Care Benefit Program, commonly called CHCBP, is a premium-based health care program that may be available after TRICARE eligibility ends. CHCBP is not the same as TRICARE, but it provides coverage similar to TRICARE Select.

For many former military spouses, CHCBP is the main bridge between divorce and new civilian health insurance.

A former spouse may be able to purchase CHCBP if the spouse loses TRICARE eligibility because of divorce and satisfies the program requirements. CHCBP generally must be purchased within 60 days after the loss of TRICARE eligibility. Missing that deadline can be costly.

CHCBP may provide temporary coverage for up to 36 months for many qualifying former spouses. Certain former spouses who have not remarried before age 55 may qualify for longer or unlimited CHCBP coverage if additional requirements are met.

CHCBP can be expensive. The cost should be considered during settlement negotiations, alimony analysis, temporary support, and financial planning. If a spouse is losing TRICARE and must purchase CHCBP or private insurance, the cost of that coverage may be a major monthly expense.

Longer CHCBP Coverage for Certain Former Spouses

Some former spouses may qualify for CHCBP coverage beyond the ordinary temporary period. This is not automatic and should be verified before the divorce is finalized.

A former spouse may need to show that:

• The former spouse has not remarried before age 55;

• The former spouse was eligible for TRICARE or enrolled in CHCBP during the required period before divorce;

• The former spouse is receiving or entitled to receive a portion of the servicemember’s retired pay; or

• The former spouse has a court order or written agreement providing for retired pay or an SBP annuity.

This is where health care, military retired pay, and the Survivor Benefit Plan can overlap. A poorly drafted settlement agreement may unintentionally affect a former spouse’s ability to qualify for longer CHCBP coverage. A spouse who needs continuing health care should make sure the divorce judgment and marital settlement agreement are drafted with the health care rules in mind.

Health Care Options for a Military Spouse After Divorce

A military spouse facing divorce should evaluate all available health care options before signing a settlement agreement or attending final hearing.

1. Continued TRICARE Under the 20/20/20 Rule

This is the best option for a former spouse who qualifies. A 20/20/20 former spouse may remain eligible for TRICARE after divorce, subject to the federal rules regarding remarriage, employer-sponsored health plans, DEERS status, and other eligibility requirements.

The former spouse should confirm eligibility with the appropriate service personnel component and DEERS.

2. One Year of TRICARE Under the 20/20/15 Rule

A 20/20/15 former spouse may receive one year of TRICARE eligibility after divorce in most modern cases. This may provide a short transition period, but the spouse should begin planning for replacement coverage immediately.

3. CHCBP

CHCBP may be available when a former spouse loses TRICARE because of divorce. It can provide bridge coverage, but it requires timely enrollment and quarterly premiums. CHCBP may be useful for a spouse who is self-employed, unemployed, between jobs, waiting for employer coverage, or dealing with significant medical needs.

4. Employer-Sponsored Health Insurance

A spouse who has access to employer-sponsored coverage should compare the cost, deductible, provider network, prescription coverage, out-of-pocket maximum, and start date. If the spouse is eligible for TRICARE as a former spouse, employer-sponsored coverage may affect TRICARE eligibility. This should be verified before enrollment.

5. COBRA

If the spouse had access to civilian employer coverage through a job or prior plan, COBRA may be an option. COBRA can be expensive, but it may preserve access to an existing provider network for a limited time.

6. Health Insurance Marketplace Coverage

A divorce may create a special enrollment opportunity for Marketplace coverage. Marketplace plans vary widely in premiums, deductibles, networks, and prescription coverage. A spouse should compare plans carefully, especially if the spouse has specific doctors, specialists, medications, or ongoing treatment.

7. Medicaid or Medicare

Depending on age, disability, income, and other circumstances, a former spouse may qualify for Medicaid or Medicare. A spouse with serious health issues should evaluate eligibility early.

8. Private Health Insurance

Private insurance outside the Marketplace may be available, but the spouse should carefully compare cost, coverage, exclusions, network limits, prescription coverage, and deductibles.

9. Coverage Through a New Spouse

Remarriage may create eligibility for coverage through a new spouse, but remarriage can also terminate certain former-spouse military benefits. A former spouse who qualifies for military health care should verify the consequences before remarrying.

Can a Florida Divorce Court Order TRICARE Coverage for a Former Spouse?

A Florida court cannot force TRICARE to cover a former spouse who does not meet federal eligibility requirements. A judge may approve an agreement, order alimony, allocate health insurance costs for children, require payment of uncovered medical expenses, or consider health insurance costs when deciding support. But the court cannot rewrite federal military health care rules.

This is an important distinction. A divorce judgment that says a former spouse “shall remain on TRICARE” may not be enforceable against the military if the former spouse does not qualify under federal law.

The better approach is to identify eligibility before settlement and draft the agreement accurately. If the spouse will lose TRICARE, the agreement should address how replacement coverage will be paid, whether alimony should account for the cost, whether CHCBP premiums should be considered, and how uncovered medical expenses will be handled.

Health Insurance and Alimony in Military Divorce

Health care costs may be highly relevant to alimony. A spouse who loses TRICARE may suddenly face monthly premiums, deductibles, copays, prescription costs, and specialist expenses. These costs can affect the spouse’s need for support.

In a Florida military divorce, the court may consider the financial needs and resources of each party, the standard of living during the marriage, the duration of the marriage, earning capacity, health, age, and other statutory factors. Replacement health insurance may become part of that analysis.

For example, a spouse who has a chronic medical condition and no affordable employer coverage may need additional support to purchase CHCBP or private insurance. A servicemember may argue that the requested amount is excessive or that a less expensive plan is available. These issues require evidence, not assumptions.

Useful evidence may include:

• CHCBP premium information;

• Marketplace quotes;

• Employer plan documents;

• COBRA notices;

• Prescription costs;

• Provider network limitations;

• Medical records showing ongoing treatment needs;

• Proof of deductibles and copays;

• Evidence of out-of-pocket medical expenses;

• Income records for both parties;

• The servicemember’s Leave and Earnings Statements; and

• Proposed alimony calculations.

If support is an issue, read our page on calculating military income.

Health Insurance for Children in a Military Divorce

Children’s health insurance is separate from the former spouse’s eligibility. The sponsor’s biological and adopted children generally remain eligible for TRICARE after divorce as long as the sponsor remains eligible and the children meet the applicable dependent-child rules.

Stepchildren are different. If the servicemember did not adopt the stepchild, the stepchild may lose eligibility when the divorce becomes final. This issue should be addressed before final judgment if the child has relied on TRICARE.

Florida child support orders should address health insurance for minor children when health insurance is reasonable in cost and accessible to the child. In a military divorce, that may involve TRICARE, private insurance, employer-sponsored insurance, or another plan.

The parenting plan and child support order should address:

• Who will maintain health insurance for the children;

• Whether TRICARE will be used;

• Whether the child is eligible through the servicemember;

• Whether the child has access to providers near the child’s residence;

• How uncovered medical expenses will be divided;

• How dental, orthodontic, vision, therapy, and prescription costs will be paid;

• How parents will exchange insurance cards and claim information;

• Who will schedule routine medical appointments;

• Who will handle referrals and authorizations;

• How emergency care will be handled;

• Whether both parents will have access to medical records; and

• How disputes over treatment will be resolved.

If the case also involves parenting disputes, read our page on military child custody. If a parent may relocate because of PCS orders, deployment, or a new assignment, review our page on relocation in military divorce.

TRICARE, DEERS, and Military ID Cards After Divorce

DEERS must be accurate. A former spouse should not assume that coverage continues simply because the former spouse still has a military ID card. The divorce should be reported and eligibility should be updated.

A former spouse who qualifies under the 20/20/20 or 20/20/15 rule should contact the appropriate military personnel office or DEERS support office to verify eligibility and obtain the correct identification documents.

A former spouse who does not qualify should not continue using TRICARE after divorce. Doing so can create repayment problems.

Divorce lawyers should make sure clients understand that the final judgment may trigger a health insurance change immediately.

Timing Issues: Do Not Finalize the Divorce Without Checking Eligibility

The timing of the final judgment can matter. A spouse who is close to satisfying the 20-year marriage requirement, 20-year service requirement, or 20-year overlap requirement should confirm the dates before finalizing the divorce.

The relevant dates may include:

• Date of marriage;

• Date of separation;

• Date the petition was filed;

• Date the final judgment will be entered;

• Date military service began;

• Date of creditable service for retirement purposes;

• Reserve or National Guard retirement-credit issues;

• Date of retirement;

• Date of divorce or annulment; and

• Period of overlap between marriage and creditable military service.

A small error in date calculation may have major consequences. A spouse who is days, weeks, or months away from eligibility should not sign a settlement agreement without understanding the health care consequences.

Common Health Care Mistakes in Military Divorce

Common mistakes include:

• Assuming TRICARE continues after divorce;

• Assuming the court can order TRICARE to cover a non-qualifying former spouse;

• Confusing legal separation with divorce;

• Failing to verify 20/20/20 or 20/20/15 eligibility before mediation;

• Ignoring CHCBP enrollment deadlines;

• Failing to budget for CHCBP premiums;

• Using an outdated military ID after divorce;

• Failing to update DEERS;

• Forgetting that remarriage can terminate eligibility;

• Forgetting that employer-sponsored coverage can affect eligibility;

• Failing to address children’s uncovered medical expenses;

• Failing to address therapy, prescriptions, dental, orthodontic, and vision expenses;

• Failing to account for health insurance costs in alimony;

• Failing to address health care for stepchildren;

• Drafting vague settlement language;

• Failing to coordinate health care terms with retired pay and SBP provisions; and

• Waiting until after the final judgment to investigate benefits.

Health care should be part of the divorce strategy from the beginning.

Health Care and Settlement Strategy

A military divorce settlement should clearly address what happens to health care after divorce. The agreement should not simply state that each party is responsible for his or her own insurance if one spouse has no realistic option for coverage.

Depending on the facts, the agreement may need to address:

• Whether the spouse qualifies for continued TRICARE;

• Whether the spouse will apply for CHCBP;

• Who will pay CHCBP premiums;

• Whether CHCBP costs are included in alimony;

• Whether alimony changes when CHCBP ends;

• Whether the spouse must seek employer-sponsored insurance;

• Whether the spouse must apply for Marketplace coverage;

• Who pays uncovered medical expenses for children;

• Whether children remain covered by TRICARE;

• What happens if TRICARE eligibility changes;

• Whether the servicemember must cooperate with DEERS updates;

• Whether the spouse is entitled to a portion of retired pay;

• Whether SBP is required;

• Whether longer CHCBP eligibility is part of the settlement strategy; and

• What remedy applies if a party fails to cooperate.

The agreement should be specific enough to enforce.

Health Care, Military Retired Pay, and SBP

Health care benefits are often connected to other military divorce issues. A former spouse’s access to certain benefits may depend on retired pay, SBP, military status, and the wording of the divorce judgment.

A spouse negotiating for a share of retired pay should also consider whether SBP is necessary to protect that income if the servicemember dies first. A spouse who may need CHCBP beyond the ordinary period should make sure retired pay and SBP issues are addressed correctly.

Military divorce agreements should not be drafted in pieces. Health care, retirement, SBP, alimony, child support, and taxes should be reviewed together.

For more information, read our pages on dividing military benefits, division of military retired pay, Survivor Benefit Plan coverage, and the Uniformed Services Former Spouses’ Protection Act.

Serving Military Families in Tampa Bay and Throughout Florida

Mockler Leiner Law, P.A. represents military families in Tampa, Brandon, Riverview, Valrico, Plant City, St. Petersburg, Clearwater, Pinellas County, Pasco County, Polk County, Sarasota, Manatee County, and throughout Florida. We also represent clients when a servicemember is stationed outside Florida, deployed overseas, assigned to another state, or dealing with military orders that affect divorce, custody, support, health care, or benefits.

Call a Tampa Military Divorce Lawyer About Health Care Benefits

Health care should not be an afterthought in a military divorce. A final judgment may affect TRICARE, CHCBP, children’s health insurance, uncovered medical expenses, alimony, military retired pay, and long-term financial security. You should know your options before the divorce is final.

We can help you make sense of your health care rights and advise you how to make sure your other rights are protected in a Florida military divorce or family law case.

Please continue reading to learn more about us. If you or someone you care about is facing a military divorce or family law case, we can help. Please do not hesitate to call us today at (813) 331-5699 or contact us online.