Young Adult Health Insurance
The Affordable Care Act (ACA) requires health insurance plans to allow parents to keep their children on their policy until the child's 26th birthday. A child can stay on their parents' health insurance even if:
- The child is married.
- The child is not living with the parents.
- The child is not enrolled in school.
- The child is financially independent.
- The child is eligible for group health insurance due to employment.
Adult children can be added to their parent's health insurance policy during Open Enrollment or any Special Enrollment Period (SEP).
Whether an adult child should stay on a parent's plan depends on a number of factors. If an adult child lives in a different city, the child may find that the local doctors and hospitals are out-of-network. If out-of-network coverage is available, it almost always results in higher out of pocket cost. Very few HMO plans offer any out-of-network benefits except in case of emergency.
The insurance company will notify the parents approximately 90 days in advance of the the child's 26th birthday that the child must purchase a policy on their own.