How to change your health insurance if you’ve separated from a partner

When you’re separating from your partner, there are a lot of tough decisions and arrangements to be made – especially when it comes to finances. One of the things you may need to do is change your health insurance policy and, if you have children together, decide how your children’s healthcare will be covered. 

We know it’s a stressful, emotional time, so here is a simple guide to everything you need to know about health insurance when you’re separating from your partner.   

Can you stay on the same health insurance policy if you’ve separated? 

No. If you and your former partner had a Couples or Family health insurance policy, you’ll need to notify your insurer as soon as possible to let them know you’ve separated. In most cases you can only have a Couples or Family policy if the insured adults are in a relationship and living in the same house. 

Generally, you’ll both have to authorise this change to your policy, regardless of which of you is the main policyholder, and your insurer may require evidence, such as an official proof of divorce. If neither of you updates your insurer about your separation, the insurer may deny claims down the track, so make sure you find out its rules for separations. 

Who pays for child health insurance after divorce? 

To get health insurance if you’ve separated or divorced from your partner, you’ll need to take out a Singles policy to cover just yourself, or a Single Parent policy to cover yourself and your children. You’ll have to work out with your co-parenting partner who will cover the children – this may be negotiated as part of your financial settlement if you are going through divorce proceedings.  

You won’t have to serve new waiting periods if you take out a policy to cover yourself (or yourself and your children) at the same tier or level of cover as your previous policy. Waiting periods will only apply if you’re upgrading your policy. 

If your financial situation following the separation is uncertain, you could ask your health insurer to put your policy on pause until you’re in a better position financially. You won’t have to pay any premiums, but you also won’t be able to claim.  

How do I pause my health insurance? 

Do I have to pay the Medicare Levy Surcharge after separating from my partner? 

At tax time, you’ll be asked how much of the year you were with your partner, so that the ATO can determine whether you have to pay the Medicare Levy Surcharge (MLS). 

The Medicare Levy Surcharge affects anyone without Hospital Cover who earned more than $97,000 as a single person or more than $194,000 as a couple, single parent or family. If your personal income as a single person is likely to exceed the MLS threshold, it may be financially worthwhile to get a new Hospital Cover policy as soon as you can after separating, to make sure you don’t have to pay the MLS. Remember, your policy will need to cover all members of your household (unless they are covered by your co-parenting partner) to avoid the MLS. 

If you don’t maintain Hospital Cover and your personal income is above the threshold for a single person, you may have to pay the MLS for the number of days you were single and above that threshold. And if your joint income was above the combined income threshold while you and your former partner were together, and you didn’t have Hospital Cover for both of you (and your children), you may have to pay the MLS for those days. Contact your accountant to get tailored advice for your circumstances.  

What’s the best health insurance policy for single adults? 

To find the best Single or Single Parent health insurance policy, visit the healthslips.com.au Calculator. We compare every policy on the market without bias. You don’t have to enter any contact details, and because we’re not selling insurance, you won’t be pressured into anything.  

Try the healthslips.com.au Calculator to find the best health insurance for your needs.