What To Do When You Get Kicked Off Your Parents Health Insurance

What To Do When You Get Kicked Off Your Parents Health Insurance

Getting kicked off your parents’ health insurance can be daunting. Here’s what you need to know about your options for healthcare coverage. 

Summary 

The Affordable Care Act (ACA) allows young adults to stay on their parents’ health insurance plan until they turn 26, regardless of their marital status, income, or living situation. But what happens when you reach that milestone birthday and get kicked off their coverage? Don’t panic – you have options. 

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If you’re like many young adults, you may have been enjoying the benefits of staying on your parents’ health insurance plan for the past few years. Thanks to the Affordable Care Act (ACA), you can remain on their plan until you turn 26, regardless of your marital status, income, or living situation. But what happens when you reach that milestone birthday and get kicked off their coverage? Don’t panic – you have options. Here are some steps to take when you get kicked off your parents’ health insurance. 

Step 1: Know when your coverage ends 

The first thing to do is to find out exactly when your coverage under your parents’ plan will end. This may vary depending on the type of plan they have and where you live. If they have a plan through the ACA marketplace, you can stay on their plan until December 31 of the year you turn 26. If they have a plan through their employer, you may lose coverage at the end of the month when you turn 26 or possibly on your birthday itself. Some states have laws that allow young adults to stay on their parents’ plan past age 26 under certain conditions. Check with your parents’ employer or insurance company to confirm when your coverage will end. 

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Step 2: Plan ahead for your health care needs 

Before you lose coverage, it’s a good idea to take care of any routine or preventive health care needs that may be covered by your parents’ plan. This could include getting a physical exam, dental checkup, eye exam, immunizations, prescriptions refills, or any other services that are covered at low or no cost by their plan. This way, you can avoid paying out-of-pocket for these services later or skipping them altogether due to lack of insurance. 

Step 3: Explore your options for new coverage 

Once you know when your coverage will end, it’s time to look for new options for health insurance. You have several choices depending on your situation: 

• Enroll in your own employer’s health plan**. If you have a job that offers health insurance benefits, this may be the easiest and most affordable option for you. You can enroll in your employer’s plan outside of the normal open enrollment period if you lose coverage under your parents’ plan. Contact your human resources department as soon as possible to find out how to sign up and what kind of plans are available. 
• Get coverage through your spouse’s or partner’s health plan**. If you are married or in a domestic partnership and your spouse or partner has access to health insurance through their employer, you may be able to join their plan as well. Most employers extend benefits to spouses and some also cover domestic partners. You’ll need to act fast though – under federal law, you only have 30 days after losing coverage to request enrollment in their plan. 
• Consider COBRA**. COBRA is a federal law that allows you to continue your existing health insurance coverage for up to 18 months after losing eligibility due to certain events such as turning 26. However, COBRA can be very expensive because you’ll have to pay the full premium plus an administrative fee without any subsidy from your parents’ employer or the government. You’ll also need to decide whether to enroll in COBRA within 60 days after losing coverage. COBRA may be worth it if you have ongoing medical needs or want to keep your current doctors and providers, but otherwise, you may want to look for cheaper alternatives. 
• Shop for an individual health insurance policy. Another option is to buy an individual health insurance policy through the ACA marketplace or directly from an insurance company. You can compare different plans and prices online and see if you qualify for any subsidies or tax credits based on your income and household size. You’ll also be eligible for a special enrollment period due to losing coverage under your parents’ plan which means you can sign up anytime within 60 days before or after your birthday. Individual plans vary widely in terms of costs, benefits, and networks, so, make sure you do some research before choosing one that suits your needs and budget. 
• Explore Medicaid**. Medicaid is a joint federal-state program Frequently Asked Questions 

FAQ’S

Conclusion 

Getting kicked off your parent’s health insurance plan can be stressful, but there are several options available to help you find alternative healthcare coverage. COBRA, marketplace plans, Medicaid, and short-term health insurance plans are all options to consider. Take the time to research each option and find the best one that meets your needs and budget