Are you a young adult concerned about how to maintain health insurance coverage once you turn 26? Many individuals in their early twenties worry about losing access to their parents’ coverage after aging out, especially if they do not have employer-provided benefits. Here’s what you need to know.
The Affordable Care Act (ACA) allows children to stay on their parents’ health insurance plan until they turn 26 years old. This provision has been instrumental in expanding healthcare coverage for young adults across the United States.
If your parent has a job-based health plan that covers dependents, you’re eligible for coverage if:
- You’re under age 26
- You’re unmarried
- You don’t have access to other job-based coverage
Options After Aging Out
Once you pass the age of 26, it’s time to start searching for alternative healthcare options. Here are some potential routes:
If your parent’s job-based health plan is subject to COBRA (the Consolidated Omnibus Budget Reconciliation Act), which requires employers with more than 20 employees who offer group health plans continue making their plans available temporarily, even after an employee quits or is terminated. Under COBRA, individuals can retain the same coverage but will have to pay the full premium themselves instead of sharing costs with an employer.
You may qualify for subsidized marketplace insurance through HealthCare.gov or your state exchange based upon family size and income level. Open enrollment runs from November 1st through December 15th annually with certain life events triggering special enrollments opportunities throughout the year.
If your income is low enough, you may qualify for Medicaid based purely on income levels alone without waiting periods or open enrollment limitations.
Wondering what next steps are right for maintaining adequate health insurance coverage after aging out of your parents’ plan? Consider going through your options and doing the necessary research, talk to a professional or contact your state exchange directly. And remember to read up on any potential tax implications for receiving outside sources of income-based financial assistance.
By keeping these factors in mind, you can make an informed decision about which healthcare option is best for you while staying on top of the latest regulations and requirements prescribed by both marketplace operators and governmental agencies.
Here are three popular FAQs related to insurance age limits and staying on parents’ coverage:
1. What is the age limit for children to stay on their parent’s health insurance policy?
Under the Affordable Care Act (ACA), children can stay on their parent’s health insurance plan until they turn 26 years old, regardless of whether they are in school, financially dependent or married.
2. Can children still be covered by their parents’ car insurance policy after a certain age?
While there is no general rule for when you must remove your child from your car insurance policy, most insurers will allow you to keep them on until they have a driver’s license and move out of your home. This could vary among different states and specific policies so it’s recommended that you speak with your insurer directly.
3. What happens if my child ages out of my coverage before finding their own policy?
If this happens, there may be options available such as COBRA continuation coverage or purchasing an individual healthcare plan under the Health Insurance Marketplace established by the ACA. It’s important to understand each option’s expenses and benefits before making any decisions regarding coverage changes.