I am close to a young man who turns 26 this year. He is currently on his mother’s plan and is starting his last year of college. He should have a job once he graduates, but what should he do until then? Does he get dropped on his birthday, or the end of that month or the end of the year? I’m afraid he will simply go without, and I’d like to be informed to advise him.
He should look into the health insurance offered by his college…if they offer it.
Otherwise, he will need to buy an individual policy directly through the company or on his state exchange when he turns 26.
He needs to check his plan. My kid was dropped the day OF her birthday, so we purchased an individual plan for her. At that point in time, she had no income, so was not eligible for an exchange subsidy.
It’s the end of the year in which you turn 26, I’m fairly certain. I guess his parents will have to purchase him a plan.
My ods had an ACA plan for a while which basically was just a catastrophic plan in case something major happened. He was working part time and had no benefits.
I think it must depend on the plan. In my daughter’s case, she was dropped from the plan at the end of the month in which she turned 26. I received notification far in advance, from both my employer and the health insurer.
I would be willing to pay for a catastrophic plan just so he is covered. He has work study income. I’m afraid I don’t know anything about the exchanges. Can I assume they will be available for next year?
I pay for my 26-year-old daughter’s plan from an exchange (New York). It’s not quite catastrophic but close. I figured it was better for her to have something while she can even though the plan or the subsidy might go away.
If he has only a catastrophic plan, it’s my understanding that he will be hit with the Obamacare penalty. My son can’t come home from Lebanon for more than 30 days in any 365-day period or he will have to pay that. Kind of frustrating, since Obamacare doesn’t do him any good over there.
I think a catastrophic plan is okay if you are age 26-30. His mother’s plan should offer him an extension or conversion. In states that have expanded medicaid, he might qualify if he is a full time student and has little income.
If he’s a legal resident of a medicaid expansion state and is attending college in the same state, he may be eligible for that program.
In my state, full time students are eligible to enroll.
@twoinanddone thanks for the info. Maybe that would work for my son if he wants to stay home longer. I wonder how pre-existing conditions are treated under catastrophic plans, though.
MTA: Google is your friend. Pre-existing conditions aren’t covered by catastrophic plans, no surprise.
This OPs kid is a student. I would strongly suggest they look into health coverage offered through the college…if they have it.
Thanks for the replies! I think I have an idea where to start now.
I didn’t have insurance in college pre-ACA because my parents were disabled (and thus, I couldn’t be on their insurance). My school’s plan was WAY too expensive for me to get.
When the ACA went into effect, I bounced between medicaid and a private exchange plan (through BCBS). I don’t recommend a catastrophic plan because if he’s likely eligible for a heavy subsidy for a regular (silver) plan on the exchange.
Good luck!
It depends on how much he makes. You can only get a subsidy if your income is in the sweet spot between 100-400% of the poverty level. If you are a student who only works a few months in the summer, you don’t get above the poverty level.
When you are dropped depends on the plan. My son was dropped from my plan on August 31, his 26th birthday. Fortunately, he had heeded my advice and was able to go right onto the post office coverage. I do COBRA him for dental, which he’s not eligible for yet, but that’s only $16/month; health insurance would have been $800! I believe that my D will be dropped on November 29, her 26th birthday. She is eligible for coverage at her current job in August, but they are changing plans and HR told her to stick on mine until her birthday. I will COBRA her dental as well.
If my kids didn’t have jobs with coverage, they’d have to go on the exchange or on Medicaid. They are capable of working and I will not sacrifice my retirement to pay for their health care. We are fortunate to live in NY, where there is coverage available.
I believe it depends upon the plan, but my kid was dropped at the end of the month he turned 26. Could get catastrophic non Obamacare compliant insurance without paying the penalty if it was for one day less than three months over the year.
He got a decent plan for $147 a month I think, through Agile Health insurance.
FYI, dental is not a COBRA insurance. Your plan may very well let you continue coverage ($16 per month sound about right for dental coverage even if you buy it on your own or through a dentist), but vision and dental are not health insurance so not covered by COBRA law. Your state could have a law that requires it, but not COBRA.
USPS insurance plans are the BEST! I used to have it through my government agency. I had to join the union ($35/yr) but I had a high deductible plan and it was terrific. Our dental policy was through MetLife and also very good, but expensive, but we could not continue it after our jobs ended even though we paid the entire premium.
All plans are different. Have his mother check with her plan administrator. Our son was able to stay on our insurance until he was 26 OR as long as he was enrolled as a full time student, even graduate school. He graduated in May, turned 28 in early July and will go off our insurance at the end of July. He has a job, but his employers’ insurance does not kick in until early September, so we are looking at COBRA for a month or so.
@juniebug , it’s so nice of you to help your friend with this matter.
I have been paying to COBRA my son on our dental plan for at least one year now. My HR department refers to it as COBRA, so I had no reason to question it. I live in NY. I was also recently told orally that I can continue this for 3 years, rather than 18 months, but I haven’t confirmed this yet.
I paid my son’s first year union dues at USPS because it was important to me that he be protected. He is now on dues checkoff. He had an issue with an on the job injury and the union stood up for him when the station wanted to discipline him. He got no discipline and the postmaster was sent for re-training and has since been transferred. He is, however, still a CCA and I am praying that he will be made regular soon (then he can get dental!). If the new contract passes, he should be eligible in the second go-round of conversions unless he converts over sooner.
My dental is MetLife and I am in a DMO. It’s $16 a paycheck for the family and $16/month for my son. Luckily, I have found a dental practice that we like and which is accommodating. my D has to come home to see the dentist, so we get to see her!