Are Parents Required to Provide Health Insurance Until Age 26? Everything You Need To Know

Health

May 16

Written By Shauna Gleason

The Gist

Have you asked yourself the question, “How long can you stay on your parents’ health insurance?” Well, individuals can stay on their parent's health insurance until they turn 26, but coverage terms may vary. Parents are also not required to provide you with health insurance until the age of 26.

If one loses their parents’ health insurance when they turn 26, it triggers a qualifying life event wherein they can take advantage of a special enrollment period which starts 60 days before the loss of coverage and ends 60 days after.
Options for new health insurance during this enrollment period include job-based coverage, Medicaid, and marketplace coverage. Medicaid may be available for those with lower income or a disability, while marketplace coverage is available through the Affordable Care Act (ACA).
If the cost of health insurance is a concern, individuals may qualify for Medicaid based on a low income or for subsidies to lower monthly insurance payments. Thanks to these subsidies, four out of five people can find a plan for less than $10 per month.

In Short

If you’re under the age of 26, you can get covered by your parents’ health insurance plan. But sometimes your parents’ coverage isn’t the best option for your needs. And even if it is, what happens when you turn 26 and need to get insurance of your own?

No matter your age, you've come to the right place to explore your options for health insurance outside of your parents’ plan.

How Long Can You Stay on Your Parents’ Health Insurance?

Exactly how long you can stay on your parents’ health insurance plan depends on the type of coverage they have. Here’s the breakdown:

If your parents have a marketplace plan and this plan covers dependents (that’s you!), then you can typically stay on their health insurance until the end of the year that you turn 26 if you so choose. So, for example, if you turn 26 on July 15, you’ll be able to stay on your parents’ plan until Dec. 31 of that same year.
If your parents have job-based coverage, then your coverage will typically end on your 26th birthday or at the end of the month that you turn 26.

Are Parents Required to Provide Health Insurance Until Age 26?

Just because your parents’ plan can cover you until you’re 26 doesn’t mean they’re required to do so.

On one hand, if you’re listed as a dependent on their tax return, it’s often easier to keep you on their policy. But not always — your parents can remove you from their plan before you turn 26. And even if they don’t, there are certain scenarios where it might be easier to have a plan of your own (even if you’re not 26 yet). Here are some of those situations:

You live in a different location than your parents and don’t have access to in-network doctors under their plan
You’re able to get health insurance from your employer that’s more affordable or provides better coverage than your parents’ plan
Your parents’ plan is too expensive to keep you on it

What Should You Do If You Lose Your Parents’ Health Insurance?

As mentioned above, your parents are by no means required to keep you on their health insurance until you turn 26. And in some cases, you might prefer to have a plan of your own before you turn 26. Either way, it’s important to know all your options so you aren’t left scrambling.

First things first: Timing. Remember, if your parents have a job-based plan, then you’ll lose that coverage either on the day you turn 26 or at the end of the month you turn 26. But that doesn’t necessarily mean you have to wait until the end of the month to start looking for a plan of your own.

In fact, you can start searching even before you turn 26, because losing your parents’ coverage on or around your birthday is what’s known as a qualifying life event. This is a fancy term for a life change that makes you eligible for a special enrollment period during which you can get a new health insurance plan (rather than waiting until the annual nationwide open enrollment period runs from Nov. 1 to Dec. 15).

This special enrollment period lasts for 60 days before you lose coverage until 60 days after, so you must find and enroll in a new plan by the end of that timeframe.

On the other hand, if your parents have a marketplace plan, then you have the option to stay on that coverage until Dec. 31 of the year you turn 26. Once again, though, this doesn’t mean you have to wait until the end of the year to find new health insurance. You’ll still qualify for a special enrollment period starting on your 26th birthday, so you can opt to shop for new coverage then. If you’d rather wait, then you can shop for your new plan during the open enrollment period starting Nov. 1.

Your Options for New Health Coverage

Now that you know when you can enroll in health coverage of your own, here are your options for what kind of insurance to get:

Job-based coverage: If your employer provides health insurance, then you can enroll in one of the plans they offer during your special enrollment period or during the annual open enrollment period.
Medicaid: It’s possible that you might qualify for Medicaid, a government program that provides free health insurance for certain people (for instance, you might qualify if you have a lower income or have a disability).
Marketplace coverage: If you can’t get health insurance through your job and don’t qualify for Medicaid, don’t worry! You can still shop for a low-cost plan on the Affordable Care Act (ACA) marketplace. It can be overwhelming to find coverage that works for you, and that’s where Stride comes in. We do the work for you by finding, recommending, and comparing the top plans for your unique needs (like your location, health concerns, and budget) and then enrolling you in the best plan in just 10 minutes.

When Will Your New Coverage Start?

Well, that depends on what type of coverage you’re getting and when you enroll in that new plan. Here’s what to expect:

If you’re transitioning to job-based coverage, then your new plan typically starts on the first day of the month after you enroll. However, it’s important to talk to your employers to get the most accurate information about your plan’s start date.
If you’re transitioning to Medicaid coverage, then your coverage typically starts on the day you apply for Medicaid or the first day of the month you apply. If you’ve already been off of your parents’ insurance for a few months, you might be eligible for retroactive Medicaid coverage during the time you were uninsured.
If you enroll in new marketplace insurance before losing your current coverage, then your new plan typically starts on the first day of the month after you lose coverage.
If you enroll in new marketplace insurance after losing your current coverage, then your new plan typically starts on the first day of the month after you pick that plan.

What If I Can’t Afford Health Insurance?

Paying for health insurance for the first time can feel daunting. But never fear — you have options.

For one, you might be eligible for Medicaid if you have a low income (exactly how low your income needs to be to qualify for the program depends on where you live). Want to see if you qualify? Enter your ZIP code below to get started. If you’re Medicaid-eligible based on your income, we’ll redirect you to the right place to get covered.

Even if you don’t qualify for Medicaid, there are still options for low-cost coverage. If your parents are no longer claiming you as a tax dependent when you lose their coverage, then you might qualify for subsidies that lower the cost of your monthly health insurance payment. In fact, four out of five people can find a plan for less than $10 per month thanks to these subsidies.

If your parents do still claim you as a tax dependent, then you won’t qualify for these subsidies. However, there are still some affordable plan options out there — just enter your ZIP code to start browsing.

While shopping, don’t forget to check the available options for dental, vision, and life insurance, too, so you can save on all kinds of coverage.

Shauna Gleason