When it comes to your family’s health insurance, you want to make sure everyone has coverage. But at what point is it time to get your kids off your family’s health insurance? Today, we’ll answer all your questions about family health insurance, and what you should consider when taking kids off your health insurance.
Thanks to the Affordable Care Act, children can stay on their parent’s health insurance policy until they turn 26. But there’s a few other things to consider if you have, or are, an adult child still on the family’s health insurance plan.
How Long Can A Child Stay On Their Parent’s Health Insurance?
Children can stay on their parents health insurance until they are 26 years old. Kids can remain, or even join, their parent’s health insurance policy until they’re 26. This includes children who are:
- Not currently living with their parents.
- Attending school.
- Not financially dependent on their parents.
- Able to enroll in another available health plan.
- Married.
Let’s say a child graduates college and gets a job with good benefits. After a couple of years, the child is expectedly laid off. Even though the child is well into their 20’s, and has had coverage outside of their parent’s health insurance, they can still rejoin their parent’s health insurance to get coverage. However, all coverage options under their parent’s insurance will end as soon as that child turns 26.
Older children should remember that their parent’s plan will not cover in-laws or grandkids. This means if you’re planning on starting your own family, your parent’s health insurance won’t cover your kids or spouse.
If you want to add your child to your job-based plan, you can do it during Open Enrollment or if your employer’s plan permits it.
If you want to add your child to a private Marketplace plan, all you need to do is include your child onto your application. This can only be done during Open Enrollment, or if your child qualifies for Special Enrollment.
Also Read: Step-By-Step Guide To Prepare For Open Enrollment 2021
What Children Need To Know About Health Insurance
Allowing your kids to stay on your health insurance plan is a big decision. Consequently, because your child is an adult, your health insurance premium will cost more. It’s important for families to be honest with each other about having older children on their health insurance, including:
- The extra premium and deductible costs.
- Whether or not the child is financially independent enough to contribute.
- Understanding how health insurance works.
- When children will have to be taken off the family plan.
- Other places children can get health insurance if they are taken off.
Having open conversations about health insurance with your children early into adulthood will help them make better decisions when it comes to their coverage.
Also Read: First-Timers Guide To Health Insurance (With Examples)
To prepare your children for what to expect from their own health insurance plan, start by breaking down what kind of coverage options they have by tier. Here’s some examples of what someone in their early 20’s might pay in monthly premiums for:
- Catastrophic: $165
- Bronze: $200
- Silver: $245
- Gold: $290
- Platinum: $365
Next, explain to your child how health insurance plans are paid for and categorized. Here’s some examples of what someone in their early 20’s might pay in monthly premiums for:
- HMO: $230
- POS: $245
- PPO: $250
- EPO: $255
Also Read: The Ultimate Guide To Navigating Your Health Insurance
Finding Health Insurance Quotes For Your Kids
If you want to start introducing your kids to what kind of options they have outside of their parent’s health insurance plan, call Quote Purple. We can connect you with one of our top health insurance partners and get you comparing quotes today.
Also Read: Open Enrollment 2021: Changes You Need To Know About