Do I need to separate?

[Roberta]

If the "inside pot" is one of those flimsy soft plastic things with one hole, then a repot would be in order. If you decide to do that, wait for new growth to start and then disturb the roots as little as possible (and certainly keep the plant together). You would choose small/medium bark to give good drainage You'd want a pot with good drainage (the ones with slits on the side are great, but plenty of bottom holes do the job too), about the same size.