When you turn 26, health insurance immediately becomes a major concern. The transition from being covered by a parent’s plan to finding coverage on your own can be quite daunting, or it can be reasonably easy, if you follow the advice here.
If you’ll be turning 26 soon, or if your parents will qualify for Medicare before you turn 26, you’ll need to find your own health insurance coverage. To make the process easier, we’ve created this guide to help you understand your many coverage options.
Reading: When do i have to get off parents insurance
When will I stop being covered by my parents’ health insurance?
See also: How Much Does Commercial Property Insurance Cost? | Commercial Insurance
The exact time your parent’s plan will stop covering you will depend on how your parents get their health insurance. Do your parents have coverage through the Affordable Care Act’s government-run marketplace (Obamacare), or are they covered by a private plan at work?
- If one of your parents is covered by an obamacare marketplace plan: You have until December 31 of the year you turn 26 to enroll in your own health plan. however, she did not wait until the last minute. You must enroll in your Marketplace plan by December 15 to get coverage beginning the first day of the year. Note: Open enrollment in most states ends January 15.
- If your parents are covered by an employer-sponsored private plan: Your coverage under the plan Your parent’s employer-sponsored health insurance plan will end on the last day of the month in which you turn 26. for example, if your birthday is April 20, your coverage will end on April 30.
- Depending on the state you live in, you may be able to get an “insurance rider” that extends your coverage beyond age 26. Young adults have the option to apply for a health insurance rider to stay on their parent’s plan beyond age 26 in seven states: Florida, Illinois , new jersey, new york, pennsylvania, south dakota, and wisconsin. If you live in New York, for example, you can ask to stay on your parent’s plan until you turn 30. You can find state-specific information on health insurance riders here. In general, you may qualify for a rider as long as you are under 29, unmarried, and do not have access to health insurance through your employer.
what happens when my parent’s plan cancels me?
The expiration of your parent’s plan makes you eligible for a special enrollment period, so after you turn 26 you’ll be able to enroll in your own plan within a specified 120-day period or during the open enrollment period of end of the year. that particular special enrollment period begins 60 days before you are disenrolled from your parent’s plan and ends 60 days after you lose coverage.
To avoid a coverage gap, play it safe by choosing a plan before or during your birthday month. make getting health insurance a birthday present for yourself. You must enroll within the first 15 days of the month for coverage to begin the following month. For example, if you need insurance starting December 1, you must sign up before November 15. If you sign up on or after November 16, your coverage will skip a month and won’t start until January 1. Please note that you may not qualify for special enrollment period insurance if you voluntarily withdraw from your parent’s insurance plan, or if your parents do not pay their monthly insurance premiums and the insurance expires.
I’m Turning 26 Soon: What Are My Coverage Options?
- enroll in your employer’s group plan. If you have the option of signing up for your employer’s group health policy, you can do so at any time, hopefully well before your 26th birthday to get comprehensive coverage at a relatively good price. If you don’t have coverage through your job when you turn 26, you may only have until the end of the month to enroll in a new plan to maintain continuous coverage, depending on the terms of your parent’s group policy. Also, if you buy an ObamaCare plan or a plan at work, you must drop your parent’s plan before your new coverage can start.
- buy an individual plan (obamacare) in the marketplace here online. If you’re self-employed, unemployed, or unable to get health insurance through your job, one option is to purchase a plan in your state or federal marketplace. Various plans are available through online marketplaces. About half of the states and the District of Columbia have their own marketplace websites. If your state doesn’t maintain a marketplace, visit the federal healthcare.gov website to search for plans there. When you apply for coverage in any marketplace, you’ll see pop-up information about whether you’re eligible for premiums or cost-sharing subsidies, plus amounts, as well as whether you qualify for immediate, virtually free Medicaid.
- Join a short-term health plan. Short-term plans of around 90 days each can be renewed to provide coverage for up to 364 days and up to three years in some states. These are limited plans and generally set monthly costs based on age and health conditions. For young people, that can make these plans an affordable option, though plans here typically charge healthy young people only one-third of what they charge seniors. but the short term insurance does not cover as much as the plans here; They also don’t cover pre-existing conditions, including maternity.
- Get coverage from an insurance company. You can find private coverage outside of the government marketplace. or you can contact any health insurance provider to inquire about your individual health plan options. another option is to check out a private marketplace where you can review several options at once.
- shop for coverage with a broker or agent. brokers and agents alike can help you compare different plan options and process your enrollment when you’re ready to sign up. but brokers and agents are not interchangeable. brokers sell plans offered by several different insurance companies; agents often sell plans on behalf of a single company. using an agent or broker is free. you don’t pay them any fees; insurers pay them based on sales.
what if you need your own health care before 26?
See also: What to do if you can’t afford health insurance 2017
You can buy an Obamacare plan before you turn 26, for example, if your parents decide not to let you sign up for their coverage. The ACA also offers inexpensive but minimal catastrophic coverage for people under age 26 who are looking for health insurance on their own.
Fortunately, there are several resources for people between the ages of 18 and 25 to obtain health insurance. it will just take a little more research to find various options.
expiry of your parent’s plan: a summary
Before the ACA, young people generally had few options to buy health insurance, but now it’s different. Before you turn 26, spend some time learning about full-coverage plans and other options, including lower-cost but limited short-term insurance, assuming your state allows it. And always keep enrollment deadlines in mind as you approach age 26. With preparation, you can make the age of your parents’ health insurance plan much less stressful and ultimately rewarding by enrolling in your own health plan.
See also: Primary vs. secondary coverage: How does it work | Insure.com
