Can I Drop My Child From My Health Insurance When They Turn 18?
Navigate the complexities of health insurance coverage for your child as they reach adulthood. Learn about eligibility, parental discretion, and alternative options.
Parents often wonder about health insurance coverage for their children as they transition into adulthood, especially as they reach milestones like turning 18. Understanding the rules governing dependent health coverage is important for making informed decisions.
Age-Based Eligibility for Dependent Coverage
The Affordable Care Act (ACA) allows young adults to remain on a parent’s health insurance plan until age 26. This provision applies regardless of whether the young adult is married, lives with their parents, is a student, or is financially dependent on their parents.
While the ACA permits coverage up to age 26, parents are not obligated to keep their children on their plan for this entire duration. Parents maintain the discretion to remove a child from their health insurance earlier, including at age 18. The federal law sets the maximum age for dependent coverage, but it does not mandate continued enrollment.
Process for Adjusting Dependent Coverage
Adjusting dependent coverage, such as removing a child from a health insurance plan, involves specific administrative steps. Most changes to health insurance outside the annual open enrollment period require a qualifying life event (QLE). While turning 18 is not a QLE for loss of coverage, gaining other coverage or a change in household status can be. If a parent wishes to remove a child and no QLE exists, the change usually must occur during the plan’s open enrollment period.
To initiate a change, parents should contact their health insurance provider directly or, for employer-sponsored plans, the employer’s human resources department. Insurers often require notification within a certain timeframe, commonly 30 to 60 days, following a QLE or during open enrollment. Necessary information may include the child’s name, date of birth, and the desired effective date of removal. Some plans may require specific forms to be completed and submitted.
Understanding Coverage Options for Young Adults
Once a young adult is no longer covered under a parent’s health insurance plan, several alternative pathways exist to secure coverage. Many young adults find health insurance through their employer. Employer-sponsored plans are a common source of coverage, with companies offering various health plan choices and often covering a portion of the monthly premium, making them a financially accessible option.
For young adults attending college, student health plans offered by their academic institution provide another option. These plans may be part of the tuition bill. Additionally, the Health Insurance Marketplace offers a range of individual health plans. Depending on income and household size, young adults may qualify for financial assistance, such as premium tax credits, to reduce the cost of these plans.
Medicaid provides free or low-cost health coverage for individuals and families with limited incomes. Eligibility is determined by income and other factors, and some states have expanded their Medicaid programs to cover more low-income adults. Young adults can apply for Medicaid through their state’s Medicaid agency or via the Health Insurance Marketplace.