Adult Children on Your Insurance

As of March 2017, many unknowns are surrounding the future of health insurance in America. The transition between the Patient Protection and Affordable Care Act (ACA) and the newly introduced American Health Care Act leaves many people who have health insurance unsure of where their coverage is headed. However, one question we hear commonly is if adult children utilizing their parents’ insurance will still maintain coverage in the coming year.

Young Adults on Parental Health Plans

Under the ACA, young adults between the ages of 18 and 26 can stay on their parents’ insurance plans. This is significant, considering an estimated 6.6 million young adults currently use their parents’ health insurance. Your child can join your plan any time that your insurer provides an open enrollment or special enrollment period. In general, young adults can join their parents’ plan even if they:

• Get married
• Have a child
• Enter or leave school
• Live with or away from the parent
• Aren’t claimed as a tax dependent
• Have turned down job-based coverage (this occurs in many cases where the insurance policy offered by the young adult’s work is more costly or less effective than the parents)

Benefits of Young Adults Staying on Health Insurance

Allowing your child to stay on your insurance plan is a decision that should be based on what is best for your family. However, this provision in the ACA was an attempt to help young adults who may face potentially severe debt caused by medical bills. About 25 to 40 percent of young adults who don’t have health insurance report having medical debt of between $4,000 and $11,000.
Gaps in health insurance coverage also cause young adults to lose touch with their healthcare providers. Uninsured young adults are less likely to receive preventive care, which can have negative, lasting effects on their health as they age.

The Future of Young Adult Coverage

As of March 2017, the ACA is still in effect, and it is believed that young adult participation in parental health insurance will be maintained in future bills. President Trump has shown support to keep this provision in future healthcare reforms.

If you have questions about your current health care coverage or are in need of health insurance, contact the brokers at Gallant Risk & Insurance, Inc. We pride ourselves on staying abreast of the latest changes to any insurance codes or laws so we can pass our knowledge on to you. You can call us at 951-368-0700 or contact us online.