Introduction
Young adults are at a high risk of losing their healthcare coverage once they age out of their parents’ healthcare policy. Unfortunately, many American adults do not understand the rules and regulation surrounding healthcare policies. Most young adults may have to transition to individual healthcare coverage after they reach a certain age. In this article we will explain the options available for purchasing healthcare, including when such options are available, and how these options can affect the price of healthcare.
Understanding the Age Limit
The maximum age for remaining eligible for your parents’ insurance coverage varies considerably between policies and state laws. However, the Affordable Care Act requires that coverage be extended up to the age of 26. Therefore, policyholders can choose to claim clients up to the age of 26 on their insurance policies.
Parent’s Coverage through Their Employer
Parents’ insurers are required by law to offer coverage for dependents up to the age of 26. Therefore, as long as your parents have health insurance, you may be eligible for their coverage up to that age. If your parents have a plan, the rules associated with the policy might determine your eligibility for insurance coverage.
Qualifying Life Events
From time to time, qualifying life events permit young adults remaining on their parents’ insurance, temporarily. These life events include marriage, disability, or having a child. The duration of the coverage offered under qualifying events varies between 30 days and 36 months. The policyholder will have to fill a form to confirm your qualifying life event, and the dependant will have to be added to their current plan within 30 days of the event.
Comparison with Alternative Health Coverage
As an alternative to being on your parent’s insurance, you may purchase your own insurance coverage. Some states may offer insurance coverage for residents who are not eligible for Medicaid. A great way to check whether or not you’re eligible for insurance coverage in your state is by visiting their online marketplace. The marketplace will have a list of all eligible insurance buyers in each state. Review all available options, compare quotes, and the budget set aside for healthcare before selecting a healthcare plan.
Benefits and Limitations of Parent’s Insurance Coverage
Staying on your parent’s insurance seems like the easiest and cheapest option, but this isn’t always true. If the policy has a high deductible, then it may end up costing you more than purchasing your own insurance. If you have a pre-existing medical condition, looking for a health care provider who can offer the necessary services may be more challenging. Ensure that you have the coverage you need to get required medical services without incurring enormous expenses.
Tips for Transitioning to Individual Coverage
Transitioning to individual healthcare coverage after reaching the age limit can be a daunting experience, but it doesn’t have to be. Analyze your options: you may choose to buy your own healthcare policy; some employers may offer healthcare insurance as part of their employment package. COBRA provides you with an option to have a continuation of your previous coverage for a certain period of time. Evaluate your options and compare quotes before selecting a healthcare option that meets your needs.
Legal Aspects of Healthcare Coverage
The Affordable Care Act introduced mandates that require policyholders to have health insurance. Failing to purchase healthcare may result in a penalty. The Consolidated Omnibus Budget Reconciliation Actions allow individuals to continue with healthcare coverage after losing a job or when aging out of their parent’s health insurance. Seek legal guidance when navigating healthcare policies to ensure that you are adhering to all state and federal rules and regulations.
Conclusion
Securing your healthcare coverage as a young adult requires careful evaluation and consideration. Many young adults may opt to remain insured on their parent’s policy, but it may be important to research options and evaluate the most cost-effective healthcare option. Seek an individual healthcare policy that covers all necessary medical treatments at an affordable cost, or consider other alternatives such as Medicaid, the marketplace, or obtaining coverage through your employer or spouse. By comparing policies and evaluating options, young adults can find insurance that is best suited for them and stay protected.
