Current health policy allows children to remain on their parent’s health insurance until their 26th birthday, provided their parent(s) either have group coverage through their employer or purchased individual coverage through the marketplace.
Deciding whether or not to remain on your parents’ plan can be a difficult decision, so here are some considerations before making your final decision:
Cost
Under the Affordable Care Act, adult children may remain on their parents’ health plan until age 26 if desired. Before making your decision to remain on your parents’ plan, it is important to understand its cost implications.
Your premium may change over time as plan sponsors raise or lower rates to cover rising medical costs.
Keep in mind that your parent’s insurance provider might offer only limited access to doctors and hospitals – if this network doesn’t meet your needs, then leaving their plan may make more sense – perhaps using either an insurance marketplace plan or your employer’s plan you could find something more suitable.
Decisions regarding leaving the family plan often hinge on costs. Young adults starting their careers often receive employer-provided health benefits that include health insurance. Although purchasing an individual policy can be pricey, through the insurance marketplace it may be possible to secure financial assistance to assist with its cost.
Your special enrollment period starts 60 days prior to when coverage under your parent’s plan ends and lasts 30 days post. As proof, you may need an official letter from either their insurer stating you no longer meet their criteria or your employer noting your loss of access to their health plan.
Another option is purchasing individual or family health plans through the insurance marketplace if applicable. Our licensed insurance agents can assist with determining eligibility and finding plans that fit both your needs and budget; for more information please see our guide to navigating the ACA health insurance marketplace.
Network
Under the Affordable Care Act, young adults under 26 can remain on their parent’s health insurance plan until age 26 as long as they do not have employment-based coverage or are no longer claimed as tax dependents by them. But remaining on such policies might not be cost effective in the long run if you live far from doctors and hospitals within their network provider network.
In-network providers typically offer lower costs for services, so most people prefer using in-network medical facilities. You can find one through your parent’s insurance search tool or customer service department directly, or by asking their physician. If you plan on moving away from their home soon, it would be beneficial to research which doctors and hospitals are covered under their insurance so you won’t end up spending more for healthcare expenses than necessary.
Your insurance should also make financial sense. If you’re on your parent’s plan, premium subsidies might be available through the Affordable Care Act marketplace if certain criteria are met. Once you turn 26, however, it will be crucial that you become informed about all available options — both from public exchanges as well as private companies — such as health insurance marketplaces and individual policies.
Start searching for health coverage during the special enrollment period that lasts 30 days before losing coverage from your parent and ends 60 days afterwards. It is vital that you enroll before this deadline or you may have to wait until open enrollment to purchase insurance of your own. During this period, individual plans with different coverage structures than group plans offered through employers can be found for sale; use the Affordable Care Act marketplace tool for this.
Convenience
Under the Affordable Care Act (ACA), almost anyone under age 26 is eligible to remain on their parents’ health insurance plan until age 26 – making this an attractive option for young adults who may be struggling to pay student loan payments and living costs. But before making this decision, a number of factors need to be considered before making this choice: 1) Stay with parents’ plan or switch? 2) Consider new plans.
First and foremost, it is crucial that you gain a comprehensive understanding of what remaining on your parent’s health insurance will cost. This can be accomplished by looking at their rates and deductible. Keep in mind that as more people join a plan, its cost rises; for this reason alone it might make more financial sense to opt for individual or family plans rather than group policies.
Another important consideration is accessibility of medical services. If your parents live nearby, finding doctors in-network with their plan may be easier; however, moving to a different state or region could make finding providers difficult and incur additional healthcare costs.
As it relates to health insurance, it is crucial to remember the length of time that you will remain under your parents’ coverage. Once you leave employment or move out, then it is time to shop around for individual health coverage through either the Affordable Care Act Marketplace or private insurers – these plans typically run between November 1 and January 15 in most states, though coverage changes due to qualifying life events may prompt purchase outside the open enrollment period.
As soon as you turn 18, most times will qualify you for a special enrollment period via the Affordable Care Act marketplace, giving you 60 days before and after you lose coverage to select and purchase health insurance on your own.
Age
How long young adults should remain on their parents’ health insurance will depend on a number of factors, including age, financial circumstances and career goals. In general, it’s advisable for young adults to obtain their own health coverage as soon as possible through either employment, the ACA marketplace or private health insurers.
An insurance plan of your own is also important if your parents’ coverage ends. In such an instance, special enrollment periods start 60 days prior and 60 days post 26th birthday when you can select an ACA marketplace plan and begin coverage immediately the next month.
College students may have options available through their school or local government that may be less expensive than an individual plan from the Affordable Care Act marketplace; however, these plans typically only cover part of your medical expenses and could prove insufficient depending on your lifestyle and needs. For a comprehensive plan that fits in perfectly with your lifestyle and requirements.
Most individuals become ineligible for parental health insurance when they turn 26, usually at the end of their birthday month or year. However, in seven states young adults can remain covered until either 30 or 31. Additionally, disabled dependents may qualify to remain on their parents’ policy indefinitely.
Remaining covered under your parents’ health insurance may make sense if you are still paying for school or your job doesn’t offer any benefits. Furthermore, keeping on their policy could give you peace of mind if you have not set forth goals of starting your own family or fulfilling any desired life ambitions yet; but be sure to consider all costs and benefits carefully before making this decision.
At the end of the day, health insurance is ultimately your decision and should be selected based on what best fits your unique situation. But remembering the potential costs can add up quickly; without proper care you could experience illnesses or accidents that significantly reduce quality of life.
