Most of us still under our parents have the privilege of benefiting from our parent’s insurance. During a certain age range, young adults can stay on their parent’s health insurance. Unfortunately, once a young adult exceeds the maximum age, they are required to get their insurance coverage.
The maximum age a young adult can stay on their parent’s insurance is 26 years. Once you get to the age of 26, you are required to get an insurance policy. Getting exceeded by your parent’s insurance does not mean you should not get coverage. Instead, it means you are of the age to get insurance coverage for yourself.
There are different ways to get insurance when you turn 26, and this includes getting insurance through your employer. This is a subsidized plan gotten through a government program (e.g., Medicaid) or the Affordable Care Act (ACA) marketplace.
How Long Can I Stay on My Parents’ Insurance
The maximum age required to stay on your parent’s insurance is 26, but in some cases, you can stay on your parent’s health insurance even if you:
- Live elsewhere.
- Get married.
- Leave or resume school.
- Are not yet declared as tax-dependent by your parents.
- Adopt a child or put them to bed.
However, this depends on your parent’s health insurance; you may lose your coverage when you turn 26. If your parents got their health insurance through their employer, you could be removed on the same day you turn 26. In a case where your parent got their insurance through the ACA marketplace, you will not be losing your coverage right away; instead, it will last till the end of the year you turn 26.
How can I stay on my Parent’s Health Insurance Until I’m 30?
Some states allow young adults to stay on their parent’s insurance till they are 30. Some states also allow young adults who are disabled to remain under their parent’s insurance for an indefinite period. However, every state requires young adults to meet a certain requirement to remain on their parent’s health insurance.
Health Insurance Options for 26-year-olds
There are quite a few health insurance options to select from as a 26-year-old after losing your parent’s insurance coverage. Your insurance coverage options depend on some factors like your income, employment, and budget. Some of these insurances include:
Health insurance through an employer
Getting insurance as a young adult can be quite difficult. One of the best and most convenient ways to get insurance is through your employer.
If your company gives group health insurance as a part of their employee benefits, it will be a good way to get insurance. One benefit of this insurance is that it is more affordable than getting individual insurance. Companies pay an average fee of $6,440 annually for coverage premiums.
Health insurance outside the ACA marketplace
It is possible to get insurance outside the ACA marketplace. You will just be getting insurance directly through a health insurance company. Some insurance companies sell health insurance directly to consumers without going through the ACA, and the same health insurance sold may not be available through the ACA marketplace.
Health insurance through the ACA marketplace
In 2010, the Affordable Care Act (ACA) was passed, and it led to the foundation of the health insurance marketplace where families are allowed to get health insurance plans. From this marketplace, you can qualify for premium tax credits, and you can also subsidize your cost if you earn below 400% of the federal poverty level. This makes insurance affordable for young adults.
Catastrophic health insurance
This is yet another affordable insurance you can get as a 26-year-old. These insurance plans can be obtained through the health insurance marketplace. Unfortunately, this health insurance is not available to everyone. They can be obtained only by people under 30 years of age or people above the age of 30 who are not financially stable and cannot afford job-based plans or a marketplace plan.
Short-term health insurance
This insurance can get you temporary coverage for a transitional period. In cases where you turn 26 and lose coverage under your parent’s insurance or you will be starting a full-time job with insurance benefits.
Short-term health insurance is a cheap option for people who have little health care needs. Unfortunately, there are downsides like already existing conditions are not covered, and they usually have high deductibles.
From these options and the rest, you can select the one that works best for you.