In the United States, many young adults lose their health insurance coverage when they turn 26 years old. This is because most employer-sponsored health insurance plans do not cover adult children beyond this age, and individual health insurance plans can be very expensive.
However, there are a few ways that young adults can stay on their parents' health insurance plan after they turn 26. These include:
By understanding these options and working with your parents and your insurance company, you can make sure that you have the health insurance coverage you need after you turn 26.
How to Stay on Your Parents' Insurance After 26
Here are 7 important points to consider:
- Employer-sponsored health insurance
- Individual health insurance
- Student health insurance
- Medicaid and CHIP
- COBRA continuation coverage
- State-based programs
- Catastrophic health insurance
By understanding these options, you can make an informed decision about how to maintain health insurance coverage after you turn 26.
Employer-sponsored health insurance
If you have a job that offers health insurance, you may be able to stay on your parents' plan until you are 26 years old. However, this is only possible if your employer's plan allows for dependent coverage. You should check with your employer's human resources department to find out if this is an option.
- Check your employer's plan:
See if your employer's health insurance plan offers dependent coverage for adult children.
- Meet the eligibility requirements:
Typically, you must be unmarried and not eligible for other health insurance coverage in order to be eligible for dependent coverage.
- Pay the premiums:
You may have to pay a portion of the premiums for your coverage.
- Stay on your parents' plan until you are 26:
Once you turn 26, you will need to find other health insurance coverage.
Employer-sponsored health insurance can be a good option for young adults who have jobs that offer dependent coverage. However, it is important to check with your employer to make sure that you are eligible for coverage and to find out how much the premiums will be.
Individual health insurance
If you do not have access to employer-sponsored health insurance, you can purchase an individual health insurance plan. However, individual health insurance plans can be expensive, especially for young adults. The cost of your premium will depend on your age, gender, health status, and the type of plan you choose.
When shopping for an individual health insurance plan, it is important to compare plans from different insurance companies. You should also consider the following factors:
- Deductible: This is the amount you have to pay out-of-pocket before your insurance starts to cover your medical expenses.
- Coinsurance: This is the percentage of your medical expenses that you have to pay after you meet your deductible.
- Copay: This is a fixed amount that you have to pay for certain medical services, such as doctor's visits and prescription drugs.
- Network of providers: This is the group of doctors and hospitals that your insurance plan covers. Make sure that your plan includes providers in your area that you are comfortable with.
Once you have considered all of these factors, you can choose an individual health insurance plan that meets your needs and budget.
Individual health insurance can be a good option for young adults who do not have access to employer-sponsored health insurance. However, it is important to shop around and compare plans from different insurance companies to find a plan that is affordable and meets your needs.
Student health insurance
If you are a full-time student, you may be eligible for student health insurance. Student health insurance plans are typically offered through your school's health center or student union. These plans are designed to provide affordable health insurance coverage to students who do not have other health insurance coverage.
Student health insurance plans typically cover a wide range of medical services, including doctor's visits, hospitalizations, prescription drugs, and mental health care. The cost of student health insurance varies depending on the school and the plan you choose. However, student health insurance plans are typically more affordable than individual health insurance plans.
To enroll in student health insurance, you must typically be a full-time student and pay the student health insurance fee. You can usually enroll in student health insurance during the open enrollment period, which is typically at the beginning of each academic year.
Student health insurance can be a good option for young adults who are full-time students and do not have other health insurance coverage. Student health insurance plans are typically affordable and provide comprehensive coverage.
If you are a full-time student, you should check with your school's health center or student union to find out if they offer student health insurance. If they do, you should compare the plan's coverage and cost to other health insurance options that are available to you.
Medicaid and CHIP
Medicaid and the Children's Health Insurance Program (CHIP) are government-sponsored health insurance programs that provide coverage to low-income individuals and families. Medicaid is available to people of all ages, while CHIP is available to children and young adults up to age 19.
To be eligible for Medicaid or CHIP, you must meet certain income and resource requirements. The income limits vary from state to state, but in general, you must have a household income that is below a certain percentage of the federal poverty level. You can apply for Medicaid or CHIP through your state's Medicaid agency.
Medicaid and CHIP cover a wide range of medical services, including doctor's visits, hospitalizations, prescription drugs, and mental health care. These programs also cover some long-term care services, such as nursing home care and home health care.
Medicaid and CHIP can be a good option for young adults who do not have other health insurance coverage and who meet the income and resource requirements. These programs provide comprehensive coverage and are typically free or low-cost.
If you think you may be eligible for Medicaid or CHIP, you should contact your state's Medicaid agency to apply. You can also find more information about Medicaid and CHIP on the website of the Centers for Medicare & Medicaid Services (CMS).
COBRA continuation coverage
COBRA (Consolidated Omnibus Budget Reconciliation Act) continuation coverage allows you to temporarily continue your employer-sponsored health insurance coverage after you lose your job or experience other qualifying events, such as a reduction in hours or a divorce. COBRA coverage is typically available for up to 18 months, and you have 60 days from the date of your qualifying event to enroll in COBRA.
- Who is eligible for COBRA?
You are eligible for COBRA if you lose your job or experience other qualifying events, such as a reduction in hours or a divorce, and you were covered by an employer-sponsored health insurance plan.
- How long does COBRA coverage last?
COBRA coverage typically lasts for up to 18 months, but it can be shorter if your employer goes out of business or if you fail to pay your COBRA premiums.
- How much does COBRA coverage cost?
The cost of COBRA coverage is typically higher than the cost of your employer-sponsored health insurance plan. You will have to pay the full premium, which includes the portion that your employer used to pay.
- How do I enroll in COBRA?
You must enroll in COBRA within 60 days of the date of your qualifying event. You can enroll in COBRA by contacting your employer's health insurance plan administrator.
COBRA continuation coverage can be a good option for young adults who lose their job and need to maintain their health insurance coverage. However, COBRA coverage can be expensive, so it is important to weigh the costs and benefits before enrolling.
State-based programs
In addition to the federal health insurance programs discussed above, many states also offer their own health insurance programs for low-income individuals and families. These programs are often called Medicaid expansion programs or state-based marketplaces.
Medicaid expansion programs are available in states that have expanded Medicaid eligibility to include adults who meet certain income and resource requirements. State-based marketplaces are online marketplaces where individuals and families can shop for and purchase health insurance plans. These marketplaces are similar to the federal health insurance marketplace, but they are run by the states.
To be eligible for a state-based health insurance program, you must typically be a resident of the state and meet certain income and resource requirements. The income limits vary from state to state, but in general, you must have a household income that is below a certain percentage of the federal poverty level. You can apply for a state-based health insurance program through your state's Medicaid agency or through the state-based marketplace.
State-based health insurance programs can be a good option for young adults who do not have other health insurance coverage and who meet the income and resource requirements. These programs provide comprehensive coverage and are typically free or low-cost.
If you think you may be eligible for a state-based health insurance program, you should contact your state's Medicaid agency or visit the state-based marketplace website to apply. You can also find more information about state-based health insurance programs on the website of the Centers for Medicare & Medicaid Services (CMS).
Catastrophic health insurance
Catastrophic health insurance is a type of health insurance that is designed to provide coverage for major medical expenses, such as hospitalizations and surgeries. Catastrophic health insurance plans typically have high deductibles, but they also have lower premiums than other types of health insurance plans.
- Who is eligible for catastrophic health insurance?
Catastrophic health insurance is available to individuals who are under the age of 30 or who qualify for a hardship exemption. You can also purchase catastrophic health insurance if you are eligible for a bronze-level plan through the health insurance marketplace, but you choose to purchase a catastrophic health insurance plan instead.
- What does catastrophic health insurance cover?
Catastrophic health insurance plans typically cover major medical expenses, such as hospitalizations, surgeries, and emergency room visits. These plans may also cover some preventive care services, such as annual checkups and screenings.
- How much does catastrophic health insurance cost?
Catastrophic health insurance plans typically have high deductibles, but they also have lower premiums than other types of health insurance plans. The cost of your premium will depend on your age, gender, and the plan you choose.
- Is catastrophic health insurance a good option for me?
Catastrophic health insurance can be a good option for young adults who are healthy and who do not expect to have many medical expenses. However, it is important to weigh the costs and benefits of catastrophic health insurance before enrolling in a plan.
Catastrophic health insurance can be a good option for young adults who are healthy and who do not expect to have many medical expenses. However, it is important to understand the limitations of catastrophic health insurance before enrolling in a plan.
FAQ
Here are some frequently asked questions from parents about how their young adult children can stay on their health insurance after the age of 26:
Question 1: Can my child stay on my employer-sponsored health insurance plan after they turn 26?
Answer 1: In some cases, yes. If your employer's health insurance plan allows for dependent coverage, your child may be able to stay on your plan until they are 26 years old. However, this is not always the case, so it is important to check with your employer's human resources department to find out if this is an option.
Question 2: What if my child does not have access to employer-sponsored health insurance?
Answer 2: If your child does not have access to employer-sponsored health insurance, they can purchase an individual health insurance plan. However, individual health insurance plans can be expensive, especially for young adults. There are a few things you can do to help your child find an affordable individual health insurance plan, such as shopping around and comparing plans from different insurance companies.
Question 3: Is my child eligible for Medicaid or CHIP?
Answer 3: Medicaid and CHIP are government-sponsored health insurance programs that provide coverage to low-income individuals and families. To be eligible for Medicaid or CHIP, your child must meet certain income and resource requirements. You can apply for Medicaid or CHIP through your state's Medicaid agency.
Question 4: Can my child get COBRA continuation coverage?
Answer 4: COBRA continuation coverage allows your child to temporarily continue their employer-sponsored health insurance coverage after they lose their job or experience other qualifying events. COBRA coverage typically lasts for up to 18 months, but it can be shorter if your employer goes out of business or if your child fails to pay their COBRA premiums.
Question 5: Are there any state-based programs that can help my child get health insurance?
Answer 5: In addition to the federal health insurance programs discussed above, many states also offer their own health insurance programs for low-income individuals and families. These programs are often called Medicaid expansion programs or state-based marketplaces. You can find more information about state-based health insurance programs on the website of the Centers for Medicare & Medicaid Services (CMS).
Question 6: What is catastrophic health insurance, and is it a good option for my child?
Answer 6: Catastrophic health insurance is a type of health insurance that is designed to provide coverage for major medical expenses, such as hospitalizations and surgeries. Catastrophic health insurance plans typically have high deductibles, but they also have lower premiums than other types of health insurance plans. Catastrophic health insurance can be a good option for young adults who are healthy and who do not expect to have many medical expenses.
These are just a few of the questions that parents may have about how their young adult children can stay on their health insurance after the age of 26. It is important to do your research and find out what options are available in your state.
By understanding the options that are available, you can help your child find affordable health insurance coverage that meets their needs.
Tips
Here are a few tips for parents who are helping their young adult children find health insurance coverage after the age of 26:
Tip 1: Start planning early. The best time to start planning for your child's health insurance coverage after they turn 26 is when they are still in high school or college. This will give you time to research your options and find a plan that meets your child's needs and budget.
Tip 2: Talk to your employer. If you have employer-sponsored health insurance, find out if your plan allows for dependent coverage for adult children. If it does, you may be able to keep your child on your plan until they are 26 years old.
Tip 3: Shop around for individual health insurance plans. If your child does not have access to employer-sponsored health insurance, you can purchase an individual health insurance plan for them. However, individual health insurance plans can be expensive, so it is important to shop around and compare plans from different insurance companies.
Tip 4: Consider state-based programs and catastrophic health insurance. In addition to the federal health insurance programs discussed above, many states also offer their own health insurance programs for low-income individuals and families. Catastrophic health insurance is another option for young adults who are healthy and who do not expect to have many medical expenses.
By following these tips, you can help your child find affordable health insurance coverage that meets their needs.
By working together, you and your child can make sure that they have the health insurance coverage they need after they turn 26.
Conclusion
As a parent, you want the best for your child, and that includes making sure they have access to quality health care. When your child turns 26, they will lose their health insurance coverage under your plan. However, there are a number of options available to help your child stay on their health insurance after they turn 26.
By understanding the options that are available and by working together, you and your child can make sure that they have the health insurance coverage they need. Here are a few key points to remember:
- Start planning early.
- Talk to your employer about dependent coverage.
- Shop around for individual health insurance plans.
- Consider state-based programs and catastrophic health insurance.
By following these tips, you can help your child find affordable health insurance coverage that meets their needs.
Remember, you are not alone in this. There are many resources available to help you and your child find affordable health insurance coverage. By working together, you can make sure that your child has the health insurance coverage they need to stay healthy and happy.