COBRA Eligibility for Plan Dependents Age 26
The Affordable Care Act, also known as Obamacare, allows young adults to remain on their parents’ health insurance plan until they turn 26 years old. This applies to both group health insurance plans and individual health insurance plans purchased through the ACA Marketplace.
However, on an adult child’s 26th birthday, many employer-based group health plans will need to remove the dependent from the plan, which creates a qualifying event for obtaining new health insurance.
One option for young adults is COBRA continuation of their parents’ work health insurance.
What You Need to Know
- The Affordable Care Act allows adult children to remain on their employer health insurance until age 26.
- A special enrollment period is available to dependents aging off of parents' health plan.
- COBRA is available for plan dependents for up to 30 months.
- You have 60 days to enroll in COBRA continuation or obtain ACA health insurance.
- Private, short-term medical plans are available for young adults to bridge an insurance gap.
Health Insurance Options When Turning 26
The loss of dependent coverage will qualify you for a special enrollment period where you may obtain new Affordable Care Act health coverage. This may be continuing on COBRA or finding an ACA health marketplace plan.
Other ways to remain insured during an insurance gap is to look at temporary, private plans.
How To Get COBRA When You Turn 26
If you have a pre-existing medical condition and are turning 26, you may be eligible to enroll in COBRA coverage through your parent's employer.
To continue your parents plan, contact the human resources department at your parent's workplace and request COBRA enrollment paperwork.
Once enrolled, you'll continue on the same health plan as you had before with your parent. You will have 60 days from the time you become eligible to enroll in COBRA coverage.
Parents Should Contact Their Employer About COBRA For Child
Here are the 3 steps that parents should take when their child turns 26 to ensure they can sign up for COBRA insurance:
- Contact your employer's benefits department. They will be able to provide you with all the information you need about COBRA, including the cost of coverage, the enrollment period, and the documentation you need to submit.
- Gather all of the required documentation. This will typically include your child's birth certificate, proof of your employment, and a copy of your child's most recent health insurance card.
- Submit the enrollment paperwork to your employer's benefits department or COBRA Administrator. Follow your employer's COBRA administrator deadlines for submitting your enrollment paperwork as they may vary.
Look Into Short-Term Health Insurance Options
Recommended
A temporary medical plan can offer coverage for unexpected illnesses and accidents if you are not eligible for COBRA or other forms of healthcare coverage. These plans usually have strict terms, such as a maximum duration, so make sure to understand whether they will meet your needs.
As these plans do not provide pre-existing condition coverage, they are often very affordable.
Find your cost based on your age and zip code.
Find An Individual Marketplace Plan
Your qualifying event will allow you to shop the health insurance marketplace to enroll in an ACA certified insurance plan. These plans are similar to the type of insurance you would get at work.
Health Plans for those Aging of Parents Plan
Frequently Asked Questions
Turning 26 initiates a special enrollment period, requiring you to find new coverage. Options include COBRA continuation, short-term insurance, marketplace plans, or employer-sponsored plans.
No, you must find new coverage. COBRA allows continuation of your parents’ plan for up to 36 months but can be expensive.
You typically have 60 days to enroll in a new plan to avoid coverage gaps.
Parents can contact their employer’s benefits department to explore COBRA options and gather necessary documentation.
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