New Hire Elects Insured Medical in State with Spousal Continuation Coverage

[rocknrolls2]

An employee resides in state X and his marriage is dissolved by a state x court which enters a judgment of divorce and the decree provides for spousal continuation. At the time of the divorce, employee works for Company A. It is unknown whether employee elected insured or self-funded medical coverage at the time the divorce decree was entered. Employee moves to state y and works in state x for Company B. Employee eleects coverage under an HMO issued in state x. Assume both state x and state y have spousal continuation statutes for insured medical coverage. Generally, I would be fine if employee were employed by Company B at the time the divorce was entered. However, there seems to be an implied provision in the spousal continuation statute that the employee be a member of the plan at the time the divorce was entered and that s/he continue to be a member. Does this mean that if employee terminates his/her job and is hired by another employer, the spousal continuation statute would not apply to the new employer?

[401 Chaos]

I think this will depend on the terms of the particular states' continuation coverage rules and/or spousal continuation rules. I may not be following all the particulars here but I wonder if the ex-spouse would not have a separate continuation coverage right under the original plan in which ex-spouse participated prior to divorce (i.e., Company A's plan) per state statutes (as I think would generally be the case under COBRA rules) such that employee's later termination of employment with Company A and subsequent employment with Company B (and employee's enrollment in Company B's health plan) would not have a bearing on the spouse's right to COBRA coverage under the original (Company A) plan?