What Do You Do When You Age Out of Your Parent's Health Insurance Plan?

What Do You Do When You Age Out of Your Parent's Health Insurance Plan?

For many twenty-somethings, health insurance is a benefit that has always been available when needed. Because their parents likely purchased a plan or were offered one by an employer, young adults rarely have to think about where their medical coverage comes from. At some point in time, however, most adults must seek out their own health insurance, a responsibility that is not always as straightforward as it might seem. Consider a few questions that may help you or your child successfully navigate the world of health insurance.

When Should You Start Looking for a Health Insurance Policy?

Fortunately, insurance companies do not kick teens off their parents' policies upon reaching the legal age of adulthood. In fact, federal laws set forth in the Affordable Care Act mandate that young people be allowed to stay on their parent's plan until they are 26. This is true even in situations where young adults are independent of their parents. For instance, a 24-year-old who lives on his or her own, has a child, or is offered an insurance plan through an employer can still choose to stay on a parent's policy. 

In a number of states, twenty-somethings may be able to stay insured through their parents even past age 26. If a young adult is disabled, for example, it may be possible for him or her to stay on a parent's plan indefinitely. People that are full-time students or are not married may receive some extra time, as well.

How Much Does Health Insurance Cost?

Insurance policies vary greatly in their cost, requirements, and extent of coverage. It's essential that you find a balance between these factors that works for you. For example, plans that have low monthly premiums frequently feature high deductibles. This means that you could be surprised with a large medical bill if you fall ill or are in an accident. Make sure your budget allows for both your regular payments and the unexpected ones. Fortunately, many policies have an out-of-pocket maximum which may prevent you from having to pay an unreasonable amount of medical bills.

Can You Gain Medical Coverage Through Your Job?

One of the simplest and most affordable ways to secure a health insurance policy after aging out of your parent's plan is to accept one that is offered by your employer. Employer-sponsored health insurance can be cost-effective because employers often pay for part of the monthly premium; however, the business owner also has the power to choose exactly what type of plan you receive.

What Do You Do If Your Employer Doesn't Offer Insurance Coverage?

When you do not have an opportunity to be insured through your job, you may wish to look into the health insurance marketplace. November and December are often great times to start a new plan. You can browse all your available options online to better understand what each plan offers and what it costs. Though your insurance could potentially be a bit pricier by taking this route, you have more control over the type of policy you choose.

In some circumstances, you may have access to alternative types of insurance, as well. People of lower income, for instance, may be able to benefit from Medicaid. Additionally, if you are a student, be sure to inquire about any insurance options your school may offer.

If you were to leave a job suddenly and lose your employer-sponsored health insurance, you are not left with no recourse. Some insurance companies offer short-term plans that can hold you over until you find another source of coverage. Similarly, the Consolidated Omnibus Budget Reconciliation Act helps workers maintain coverage while searching for a new job.

Which Option Is Right for You?

There are many factors that may influence the type of plan you need. If you have dependents, for instance, you may wish to look into a family policy. If not, an individual health insurance plan may be preferable. Different policies may also place limitations on the types of medical visits they cover. If you don't feel the need to seek out your own doctors, a Point of Service or Preferred Provider Organization plan may be a good choice. Additionally, remember that dental and vision coverage are frequently optional additions to your regular health insurance plan.

Is Health Insurance Worth the Cost?

Even if you rarely experience medical problems, it's critical that you maintain insurance of some kind. After all, life can bring about unexpected circumstances that may leave you with steep medical bills. On top of that, having insurance makes it more affordable to carry out preventative health measures so you can stay healthy as you grow older.

Line Up Your Plan Today

If you are approaching the age limit on your parent's health insurance plan, or your child is about to age out of yours, start looking into new types of coverage as soon as possible. To learn more about the best policy for your circumstances, call Sackett & Associates Insurance Services at (707) 823-3689