Settle a debate, of sorts, between my husband and I. We have received conflicting information from different sources.
Oldest child graduates from college and starts a new job, with health benefits. Oldest child stays on parents insurance because they are less than 26 years of age and it’s cheaper than buying their own. Child lives in our home, but moves out a few months later, in case this matters for dependency status.
One health insurance professional says that there are no restrictions and child can stay on until age 26. Another similar professional says child must be a dependent and under age 26. Another person claims that if the child has access to their own company insurance, they cannot be on ours, that this is just for an uninsured kid with preexisting conditions.
I think it really depends on your insurance and how they cover the adults.
We have both of our “under 26’ers” on our insurance because one lives at home and one lives inner university housing prof/med school. Both are still in school.
One will turn 26 next year but will still be in her rotations. She plans on using the state-funded program to cover her insurance needs.
We plan on supplementing anything that is not covered, but are looking into Cobra-like plans.
Neither has jobs yet, that will cover insurance.
Once our eldest started working, she used her company insurance because it was BETTER than ours!
My son was on our health insurance until he turned 26. He was employed since he graduated college and worked/works at company that has health insurance for all employees. He didn’t/doesn’t even live in same state as us.
Ours were on while they were still age 25, but once they turned 26, they were off. Our employed son just got off ours though he had employer insurance available for several years. It was cheaper for him to stay on ours. It didn’t cost us extra since we have several younger kids and needed a family plan anyway. Check your plan–I think most go by the month. For our kid the last day of the month happened to be the day after he turned 26.
"Generally, you can join a parent’s plan and stay on until you turn 26 even if you:
…
Aren’t claimed as a tax dependent
Turn down an offer of job-based coverage
If you’re covered by a parent’s job-based plan, your coverage usually ends when you turn 26. But check with the employer or plan. Some states and plans have different rules.
If you’re on a parent’s Marketplace plan, you can remain covered through December 31 of the year you turn 26 (or the age permitted in your state)."
Kids can stay on their parents plan until age 26, whether or not they are dependent., assuming the plan the parents have is compatible with the requirements of the affordable care act.
As to when the kid is kicked off, it depends on the specific insurance. My son was off the first day of the month after he turned 26. Other kids in my company were able to stay on their parents’ plan until the end of the year in which they turned 26.
One of mine went off due to better and less expensive job coverage and then when he quit that job came back on mine. Losing employer-based coverage (regardless of whether he was let go or quit) was considered a qualifying event and he could join even though it was not an open enrollment period.
By the way, I found out that you actually have a couple of months in which to elect COBRA. My son had a month without insurance and I didn’t realize I could have waited to see if he needed the COBRA or not.
@mom2and Exactly. Almost all employer plans comply with affordable care act and thus by law on these plans your kid is entitled to stay on your plan until they are 26 even if they are independent and independently wealthy.
Yes, COBRA can be activated retroactively within the 60-day election period- which is very useful in situations where a person moves from one job to another but there is a delay of 1-2 months before the insurance at the new job goes into effect.
Who told you these things? The only one that matters is YOUR health insurance plan. Ask someone in HR or call your health insurance provider.
Some plans do place restrictions on continuing kids when they have employer sponsored coverage. Others don’t…actually, I think mist don’t.
ACA guidelines are clear. Your kid can remain on your health insurance group plan until age 26 (again…check YOUR plan for the details) and that is even if they are married and don’t reside with you.
Our daughter is 24, just got her first job in another state. My DH is a gov’t employee so our benefits are better than anything she can get. She will stay on ours until she is kicked off at 26.
When D1 graduated, I was still married with another kid at home, so to have her stay on my insurance was free and my insurance was better. When D2 was college I was divorced, to have her on my insurance was more expensive than for her to get an insurance through her school (and it was a very good insurance), so I didn’t have her on my insurance. When D2 started her job, I’ve changed my job and my insurance was cheaper to include than what her job charged, so she came back on my insurance until she turned 26. She was off the first day of the month when she turned 26.
Some companies only offer medical insurance to adult children and some companies also offer dental/vision to adult children.
I was relieved to see that our just-turned 26 year old is eligible not just for COBRA medical (which is pricey) but also dental (a reasonable monthly fee). He transitioned to his own employer’s medical when he made a recent job change, but there is no dental coverage through his work so 3 years of dental insurance at $30 month is great news!
our non dependent kid has turned down his insurance at his company because our family plan through work is cheaper (and better) than what he’s offered. He’ll stay on this as long as he can. But what’s sort of funny - he works for the insurance company that offers our family plan that’s better than his own.
Semi-annual appointment with our dentist runs about $350 per appointment. Six appointments over three years, assuming no other problems – $2100 in benefits. Preventive care is often covered at close to 100%. If cash flow for a large dental bill is an issue for this young adult, premiums may make more sense so he has a safety net.
My experience is that 26 yo can stay in parents insurance until end of year in which they turn 26. I administer health care for small company and my oldest is in this age range.
My kids were not allowed to be on my plan the very day they turned 26.
@svlab112 you are fortunate that yours were able to remain on your plan until the end of the year, but that definitely is not what everyone will find is the case.
Folks need to check with THEIR plan administrators to find out the deal.
I know folks whose kids were covered until the day of their 26th birthday, the end of the month of the 26th birthday, and you say the end of the year of the 26th birthday. Clearly, YMMV depending on your provider…so ask there.