Nebraska Divorce Decree - healthcare coverage exception

[Guest jy12443]

I'm hoping someone has dealt with this one before! Nebraska Statute 42-372.01(3) provides that "for purposes of continuation of healthcare insurance coverage, a decree dissolving a marriage becomes final and operative six months after the decree is entered."

Do you think a self-insured plan whose terms require a loss of coverage upon divorce - is required to treat an employee as "married" until 6 months after divorce decree is filed?

This issue was brought to the plan's attention by the attorney of the employee's spouse.

I'm thinking the plan would have to honor the statute, since requirements re: divorce, marriage are typically state law issues.

Any thoughts would be appreciated.

[Peter Gulia]

For those who might like to comment on this query, Nebraska's statute (with surrounding context) is at

http://nebraskalegislature.gov/laws/statutes.php?statute=42-372.01

[Chaz]

I'm hoping someone has dealt with this one before! Nebraska Statute 42-372.01(3) provides that "for purposes of continuation of healthcare insurance coverage, a decree dissolving a marriage becomes final and operative six months after the decree is entered."

Do you think a self-insured plan whose terms require a loss of coverage upon divorce - is required to treat an employee as "married" until 6 months after divorce decree is filed?

This issue was brought to the plan's attention by the attorney of the employee's spouse.

I'm thinking the plan would have to honor the statute, since requirements re: divorce, marriage are typically state law issues.

Any thoughts would be appreciated.

Without looking at this in depth, I would imagine that the NE statute is preempted by ERISA and COBRA with respect to its application to a self-insured plan, at least to the extent that the employer has 20 or more employees.

[jwilliams728]

On 2/21/2013 at 1:56 PM, Guest jy12443 said:

I'm hoping someone has dealt with this one before! Nebraska Statute 42-372.01(3) provides that "for purposes of continuation of healthcare insurance coverage, a decree dissolving a marriage becomes final and operative six months after the decree is entered."

Do you think a self-insured plan whose terms require a loss of coverage upon divorce - is required to treat an employee as "married" until 6 months after divorce decree is filed?

This issue was brought to the plan's attention by the attorney of the employee's spouse.

I'm thinking the plan would have to honor the statute, since requirements re: divorce, marriage are typically state law issues.

Any thoughts would be appreciated.

Did you have any luck with this one?

[CaliBen]

We have a client with a self-funded health plan. Ex-spouse of employee in Nebraska claims he should still be covered for 6 months (until divorce decree is final for purposes of health plan per Nebraska statute). 

Question: because the plan is self-funded does ERISA preemption apply? Would the answer be different if the plan was insured?

 

 

[leevena]

On 2/22/2013 at 8:03 AM, Chaz said:

Without looking at this in depth, I would imagine that the NE statute is preempted by ERISA and COBRA with respect to its application to a self-insured plan, at least to the extent that the employer has 20 or more employees.

I agree with Chaz, ERISA preempt state law, including any type of state mandated extension of coverage.