What Are My Options Once I Age Off of My Parent's Health Insurance?

Suppose you turn 26 soon and are currently on a parent or legal guardian’s health insurance. In that case, it is a great idea to start exploring options for either re-enrolling or signing up for new health insurance coverage. How your parents get their insurance will determine when a plan stops covering you. You can sign up for numerous coverage options to aid in this transition, including employer-sponsored coverage, marketplace plans, and health insurance alternatives.

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Aging Out Of Your Parent’s Health Insurance Plan

If a parent’s health insurance plan covers dependents, you usually can be added to their plan and stay on it until you turn 26. Under the Affordable Care Act (ACA or Obamacare), individuals can remain on their parent's health insurance plan until they turn 26 years old. This includes individuals who:

• Get married
• Start or leave school
• No longer claimed as a tax dependent
• Have adopted a child
• Decline an employer-sponsored health insurance plan
• Live in or out of their parents’ home

When Am I No Longer Covered By My Parent’s Health Insurance?

After turning 26, the exact time at which your parent’s health insurance plan expires will depend on how your parent gets their health insurance - private or public coverage. Here are a few timelines:

Parent Has an Obamacare Marketplace Plan:

You will have until December 31st of the year that you turn 26 to sign up for health insurance. However, you must enroll in a Marketplace plan by December 15th to get coverage that begins on the first of the following year.

Parent Has a Private Employer-Sponsored Plan:

You will have coverage until the last day of the month you turn 26 (e.g., If your birthday is on May 15th, your coverage will end on May 31st). 

“Insurance Rider” Extended Coverage:

Another option, depending on which state you live in, is to apply for a health insurance rider. This allows you to stay on your parent’s plan beyond 26. However, this is only allowed in these seven states: Florida, Illinois, New York, Pennsylvania, South Dakota, and Wisconsin. These states usually extend coverage to age 30 or 31. One can generally qualify for a rider as long as you are:

• Under 29
• Unmarried
• Do Not Have Access to Health Insurance Through an Employer

After Aging Out Of Parent’s Plan

You qualify for a special enrollment period when you age out of your parent’s plan. This lets you enroll in a health plan outside of the usual open enrollment period. Special enrollment is granted to anyone with a “Qualifying Life Event” (QLE). Your QLE immediately begins the special enrollment period once it occurs, where you can pick a new comprehensive health plan without penalty. After turning 26, you will be able to sign up for your plan within a specific 120-day period or during the year-end Open Enrollment Period.

To avoid a coverage gap, you should decide upon a plan before or during your birthday month. You must sign up within the first 15 days of the month you are losing insurance to have coverage kick in the following month. For example, if you need insurance starting December 1, you must enroll by November 15. If you enroll any later, coverage will skip a month, and you won’t be insured until January 1.

You can not qualify for a special enrollment period if you voluntarily withdrew from your parent’s insurance plan or if your parents fail to pay their monthly insurance premiums and their insurance expires. You do not want to experience a gap in coverage. If the 120-day window for special enrollment passes and you have failed to secure your health insurance plan, you could find yourself paying medical expenses in full.