My child is coming off of my insurance, what do I do now?
The Affordable Care Act requires that adult children may be included in their parent’s group health insurance until the age of 26. When the child ceases to be a dependent, the type of qualifying event is known as “loss of dependent status”. So what is next?
What To Do When Parent’s Health Insurance Ends
There’s only so many choices and it’s a big decision depending on where the former dependent child is at in life. Here’s 3 options:
- Continue on the same qualified group health plan, through COBRA, for the same benefits
- Get a qualified health plan, through work or a health insurance marketplace, for the most coverage
- Get a short-term health plan, for affordability
If COBRA is an option, before your dependent reaches the age of 26, be sure to contact your employer’s human resources department and ask for COBRA paperwork to have them enrolled. Continuing on the same health plan through COBRA may last up to 36 months.
It’s important to remember that your employer will no longer subsidize your former child’s health insurance like they do via paycheck deduction. When continuing health insurance under COBRA the entire premium must paid and there may be a 2% administration fee.
Affordable Temporary Health Insurance
If you are fairly healthy and still want to remain insured, alternatives to COBRA insurance may be available based on where you live. Short-term health insurance is a popular option and available in most States. This can protect you from high medical costs of new injuries or new illnesses that unexpectedly occur while allowing you to use any licensed doctor. Coverage is available up to $1 million per person. For more information and pricing, you can call us at 1-877-262-7241 or complete a free quote online.