My suggestion would be to keep the VERY BEST health insurance plan you can no matter what. I have an amazing insurance plan and while my medical expenses are certainly not the usual I still pay a substantial portion each month out of pocket. IMO that is not something you should change in order to pay for something else.
I don't see this as any sort of punishment. Your W had the luxury of being home after being laid off and being supported financially. She had her credit cards paid off by you and now has run them up again. Her choices, both financially and in life have not exhibited a whole lot of responsibility. That's fine, her choice but Romeo should not have to fund her irresponsible choices.
If I understand CA law correctly for a spouse who earns much less Romeo's W will have spousal support until she marries again or dies. Also, "Miss Romeo" will be entitled to Romeo's social security benefits if she never remarries even if Romeo does. Seeing how his self funded retirement plan is already on the table that is a scary thought. There is also the real estate settlement she will get, retirement and other assets to divide.
Seeing her inability to commit to a R he could be paying spousal support for decades to come even if he has another family to support. Factor in child support and expenses such as college for his daughter and you are looking at years of financial struggle for a man that only wanted to provide for his family in the best way.
A certain aspect of divorce is all about the numbers but if you are only going to talk numbers then look at it as a business person would. There is no such thing as "something for nothing" in business.
When somebody is getting thousands per month is support asking for additional funds to pay a 50.00 phone bill speaks volumes.
