Staying on your parents’ health insurance plan is an option that first appeared with the Affordable Care Act (ACA) when Congress passed the legislation in March 2010. One decade has passed, and this stipulation remains one of the most popular.
In the following article, we’ll be discussing just how long into adulthood that you can stay on their plan, why that matters, and what you need to do as you wean yourself to a personal plan of your own. Let’s begin!
Rule of 26
There is actually a simple answer to the question of how long can a child stay on parents health insurance. The age is 26, and that’s true regardless of life circumstances.
You cannot be rendered ineligible by marriage, living on your own away from your parents, if you’re a parent of your own, or you’ve opted not to accept your company’s health plan. The option is there until 26, period.
Expanded Coverage
However, that’s not quite the end of it. Another aspect to the question of how long can you stay on your parents health insurance is the expanded coverage option. In this case, you are covered for an additional three years until the age of 29 if you’re unable to find health insurance of your own.
The law was originally passed in 1985, giving divested employees the chance to continue under a group plan for a period of time after the termination or resignation from their employment. As you consider this option, you’ll also want to get ready to follow your own path. To do so, follow these steps.
1. Know Your Options
You can purchase a healthcare plan from the HealthCare.gov website and will likely be able to qualify for subsidies or tax credits based on your income. The fate of the law has been somewhat in question amid the 2020 Election, but the recent election of President Joe Biden paints a rosier picture for it.
Other options include catastrophic care insurance, small group health insurance, or employer-based. The employer-based and small group work similarly by trying to spread out the risks across a healthy pool of customers.
2. Discuss Staying On Your Parents Plan With Them
If you do choose to continue on your parents’ health insurance plan past the age of 26, or maybe even past the age of 21 until 26, discuss it with them first. Health insurance can be a burden, and it’s courteous to contribute something to the coverage if you can.
A heads-up at the very least will go a long way to winning their trust and support. Also, look for ways you can mitigate your costs through part-time or full-time employment and side gigs.
3. Be Ready
A health insurance plan will save you a lot of money and provide ample peace of mind in the event of a major health incident. Do realize it comes with responsibilities, though, such as the following:
- Deductibles
- Co-pays
- Cost of any needed prescriptions
- Percentage of payment for certain care or procedures beyond a certain limit
The monthly premium isn’t the end of it. Be aware of the other costs and the average costs of your age group. Plan accordingly.
Parents Health Insurance Policies Can Lend A Helping Hand
Staying on your parents’ health insurance can save you a small fortune and allow you to start building towards your future. It’s important to understand the ins and outs before you go that path.
FutureWise is a Texas-based insurance company that can get you started with a policy of your own. Contact us today to get free quotes on the plan of your choosing.