How Long Can One Stay on Their Parent’s Health Insurance?

According to federal law, individuals can be covered by their parent's health insurance policy until they turn 26. Certain states extend this opportunity even beyond the age of 26. At some point, everyone needs to get their own policy but many people are confused by insurance complexities. 

Here's what you need to know about maintaining coverage from your parent's health insurance plan and what to do when the coverage expires.

1. Maintaining health insurance through parents

   The Affordable Care Act (ACA) allows children to remain on their parent's health care plan through age 26. The ACA applies to employer-sponsored coverage as well as all other types of health insurance plans. Be aware that several states extend coverage past age 26, particularly for disabled individuals.

   Whether you go to college or not, get married, or stay single, the law allows you to maintain coverage under your parent's health plan through early adulthood. Even if you move out of your parent's home, you can still be covered by their health insurance. However, you must not be claimed as a dependent by your parents on their tax returns.

2. Health insurance options for young people

   One of the key options for young people, when they turn 26, is to extend coverage for a while under their parents' insurance, as per the Consolidated Omnibus Budget Reconciliation Act (COBRA). You can also check with your employer to find out if the company offers a group health plan. Otherwise, you should get acquainted with the federal government's Health Insurance Marketplace at HealthCare.gov.

3. Selecting the right coverage

   The tricky part of insurance is selecting coverage based on your personal needs, as several insurance plans may be unsuitable for you. That means you have to be careful with what you sign up for and make sure to read the policy carefully.

   Don't assume that all the coverage you need is automatically included in a standard health insurance policy. Instead, talk to your insurance agent and ask questions about risks that concern you. If you need special medication or therapy, it needs to be reflected in your health plan.