Health insurance is essential for medical expenses, and many young adults rely on their parent’s plan for coverage. Understanding when this coverage ends and what steps to take next can help individuals prepare for a smooth transition to their health insurance. A coverage gap could leave them responsible for unexpected medical costs without planning.
Knowing the available options ensures continuous protection and access to necessary healthcare services.
Age Limit for Staying on a Parent’s Health Insurance
Under the Affordable Care Act (ACA), young adults can remain on a parent’s health insurance plan until they turn 26. This applies regardless of marital status, financial independence, or whether they live with their parents. Even if employed and offered health insurance through an employer, individuals under 26 can still choose to stay on their parent’s plan.
What Happens When You Turn 26?
Once a person reaches 26, coverage under a parent’s health insurance typically ends. Some plans provide a short extension until the end of the birth month or calendar year, but coverage does not automatically continue. Exploring new insurance options before this deadline is essential to avoid a coverage gap.
Health Insurance Options After Turning 26
- Employer-Sponsored Health Insurance
Many companies offer health insurance as part of employee benefits. Checking employer-sponsored plans is a good first step of starting a new job or already employed. Losing a parent’s coverage qualifies as a special enrollment period, allowing individuals to enroll outside the usual sign-up period.
- Marketplace Health Plans
The Health Insurance Marketplace provides various plans for individuals who do not have employer-sponsored coverage. Special enrollment periods allow for sign-ups after losing coverage. Depending on income, subsidies and tax credits may be available to lower monthly costs.
- Medicaid or CHIP
Medicaid or the Children’s Health Insurance Program (CHIP) may be an option for lower-income people. Eligibility varies by state; some young adults qualify for free or low-cost healthcare coverage.
- COBRA Coverage
Some plans allow individuals to continue coverage under COBRA (Consolidated Omnibus Budget Reconciliation Act) for a limited time after losing eligibility. This allows continued access to the same benefits but often comes at a higher cost since employers no longer contribute to premiums.
When to Start Looking for a New Plan
Waiting too long to explore new coverage options can lead to a gap in health insurance. It is best to start researching plans at least a few months before turning 26. Comparing coverage, costs, and provider networks ensures a smooth transition.
Secure the Right Health Insurance with ISU Wissink Insurance
Choosing the right health insurance can be confusing with so many options available. Understanding coverage, costs, and enrollment deadlines is essential to avoid gaps in protection.
At ISU Wissink Insurance, we offer expert guidance to help you compare plans and find the best coverage for your needs. Contact us today at 310.390.3318 to get your options and secure the right health insurance plan.