Your health insurance options will change after your spouse’s death. 

I’m sure you’d rather stick a hot needle in your eyeball because it would be less painful than dealing with all the health insurance nonsense, but you have some decisions to make. 

It’s important to notify your health insurance company (or Medicare if you/he are enrolled) of your spouse’s death to remove him from your policy and reduce your premium amount. Please do not keep paying the health insurance premium for a dead person. 

Several options exist for health care coverage for your family depending on your unique situation.  

But first…

Cancel refilling prescriptions

Before you cancel or change any health insurance policies, be sure to cancel any refilling prescriptions first. You don’t want to get caught up in any paperwork mix-ups that hinder your process. If you know the specific prescriptions your spouse was taking you can call the pharmacy and cancel any that are set to automatically refill. 

If you aren’t sure, call your spouse’s doctor and request a list of any medications that may have been automatically refilled. The doctor’s office should know which pharmacy filled the prescription and you can contact that pharmacy to cancel the script. 

Research coverage options

You have lots of choices when it comes to health insurance, so it’s in your best interest to apply due diligence and figure out your best option.

Medicare/Medicaid/CHIP

Medicaid, Medicare, and CHIP (Children's Health Insurance Program) are insurance programs provided through the federal government. 

Medicaid and CHIP are assistance programs that serve low-income people of every age. These are federal-state programs meaning that the Federal Government establishes guidelines, but each state administers its program differently.

Patients usually pay no part of costs for covered medical expenses, although a small co-payment is sometimes required. Every state has its own program eligibility requirements, but as a rule, coverage includes doctor visits (check-ups, immunizations), dentist visits, hospital care, mental health services, prescriptions and more.  

Click here to see if you qualify for your state's Medicaid or CHIP  program.

Medicare, on the other hand, is a federal program so rules and regulations are the same across every state. Your medical bills are paid from trust funds you’ve already paid into over the years. You don’t qualify for Medicare until you reach age 65 unless you’re disabled or are a dialysis patient.  

You’re still responsible for some medical costs such as deductibles and other costs and small monthly premiums are required for non-hospital coverage. 

If your spouse received Medicare and you already notified the Social Security Administration of his death, his Medicare benefits were likely terminated. If you aren’t sure, you can call the Social Security Administration to confirm. You will also need to confirm with your bank if Medicare benefits were automatically deposited into your deceased spouse’s account. Any funds deposited after his death need to be repaid. 

COBRA

If you receive healthcare coverage under your spouse’s employer plan, you are eligible to continue that plan for 18 months as part of the Consolidated Omnibus Budget Reconciliation Act, better known as COBRA. The COBRA act requires group health plans to provide temporary continuation of group health coverage that otherwise might be terminated. 

COBRA is expensive, y’all. 

If you need immediate coverage, use this option. But keep in mind the quicker you find an alternative health care plan, the better!

Health Insurance Marketplace

The Health Insurance Marketplace helps people compare and enroll in affordable health insurance. The marketplace or “exchange” is operated by the federal government as an extension of the health care reform law (aka the Affordable Care Act or Obamacare) that went into effect in 2010. 

Quotes for individual and family coverage rely on income and household information to determine if you qualify for premium tax credits. Depending on your income and how many people are in your family, you might be able to save money on your health insurance premiums by applying tax credits from the federal government.

An identical policy offered by a health insurance company outside of the marketplace will not offer the same savings or premium tax credits. You must apply through the marketplace for these savings.

The application process also alerts you if you qualify for coverage through your state’s Medicaid or Children’s Health Insurance Program (CHIP). The marketplace only alerts you of potential coverage. 

You must apply for Medicaid or CHIP coverage externally through your own state’s program.

Medical cost-sharing program

A medical cost-sharing program is an alternative to traditional health insurance policies.

Instead of buying a policy in which you pay premiums to the insurer who dictates coverage options and network providers, a medical cost-sharing program requires members to share in one another’s healthcare costs. 

These programs are also called ministries because they’re faith-based, but that doesn’t mean you can’t join if you’re faith-averse. It just means that some ministries are limited to Christians living by biblical principles only and some encourage a willingness to let others worship however they choose. You’d have to do your homework to find one that fits your needs.

The costs are significantly less than a traditional policy and since they don’t operate on a network-based program, you can see whatever doctor you choose. Sounds too good to be true? 

Well, there are pros and cons to each program.

Click here for a comprehensive comparison of four of the most popular cost-sharing plans.

Health Savings Account (HSA)

A Health Savings Account (HSA) is like a personal savings account, but it can only be used for qualified healthcare expenses. The biggest benefit of an HSA is that it’s a tax-advantaged account that helps you pay for medical expenses tax-free.

I’ve had an HSA for years because, as a self-employed person, I’m not eligible to enroll in a group insurance policy offered by other employers. I am my own employer, so I’m on the hook for my own health insurance. 

But my HSA offers perks the other group policies don’t. 

For example, my contributions to the HSA are not subject to any tax and neither are the withdrawals used to pay for medical expenses. Basically, an HSA is a tax-sheltered account that protects me from taxes when the money goes in and when it comes out if I use the funds for qualified medical expenses. You won’t be taxed on any interest earned either. Your HSA account can grow without penalty. And HSA balances roll over from year to year so you could effectively start saving now for medical costs in your retirement years.

To recap: An HSA allows you to contribute tax-free, grow your earnings tax-free and withdraw tax-free. Plus, when you contribute to an HSA, you’re lowering your adjusted gross income (AGI) which means you’re paying fewer taxes on income received.

To be eligible, you must be enrolled in a High-Deductible Health Plan (HDHP). When you have a higher deductible, you’ll pay more out-of-pocket, but you’ll get lower premiums and the opportunity to put money into the HSA to save for future medical costs.