Turning 26 is a major milestone, and for many, it also marks the end of coverage under a parent’s health insurance plan. Thanks to the Affordable Care Act (ACA), young adults can stay on a parent’s plan until age 26, regardless of student status, marital status or dependency. As your birthday approaches, it’s time to explore your own coverage options to avoid a gap in insurance.
When Does Coverage End?
The exact date your coverage ends depends on the type of plan your parents have. If they’re covered through an employer, your coverage typically ends at the end of your birthday month. If they have a marketplace plan, coverage usually lasts until December 31 of the year you turn 26.
What Are Your Options?
Here are the most common health insurance paths for newly independent adults:
Employer-Sponsored Insurance: If you have a job that offers health benefits, this is often the most affordable and comprehensive option. Employers typically cover a significant portion of the premium.
ACA Marketplace Plans: If you don’t have access to employer coverage, you can shop for a plan on the Health Insurance Marketplace. Depending on your income, you may qualify for subsidies that can reduce your monthly premium to as little as $102.
Medicaid: If your income is low, you might qualify for free or low-cost coverage through Medicaid. Eligibility varies by state, but many offer coverage based solely on income.
Partner’s Plan: If you’re married or in a domestic partnership, you may be eligible to join your partner’s health insurance plan during an open or special enrollment period.
Student Health Plans: If you’re still in school, check if your college or university offers a student health insurance plan. These can be convenient and affordable, especially if you’re studying out of state.
COBRA: If you were covered under a parent’s employer plan, COBRA lets you continue that coverage temporarily. However, it’s usually expensive and best used as a short-term solution.
Turning 26 qualifies you for a Special Enrollment Period, giving you 60 days to enroll in a new health plan before or after your coverage ends.
Final Tips
- Start early: Don’t wait until your coverage ends. Explore your options and apply in advance.
- Compare plans: Consider your health needs, budget and preferred providers when choosing a plan.
- Use online tools: Sites like HealthCare.gov let you preview plans and estimate costs based on your income.
Turning 26 doesn’t have to be stressful. With the right information and a little planning, you can transition smoothly into a health insurance plan that fits your life and budget.
