ACA Health Insurance for College Students: Unlocking the Benefits of Independence

As a high earner, you may not qualify for any financial assistance through the Affordable Care Act (ACA) marketplace. However, your daughter, who is currently uninsured, may be eligible for free or low-cost coverage through the marketplace. Here’s what you need to know:

Claiming Dependents vs. Individual Coverage

In general, children under the age of 19 or full-time students under the age of 24 can be claimed as dependents on their parents’ tax returns. However, once a child turns 19 and is no longer a full-time student, they are considered an adult dependent. This means their income is counted when calculating ACA subsidies and insurance premiums.

In your case, your daughter is 19 and earns $17,000 per year. By filing her own taxes and not claiming her as a dependent, her income will not affect your eligibility for premium tax credits. This means she may be able to get a free or low-cost Silver plan on the ACA marketplace.

Note: If your daughter is claimed as a dependent on your tax return, you will not be eligible for premium tax credits.

Benefits of Individual Coverage

There are several benefits to your daughter having her own individual ACA plan:

Subsidies and cost savings: She may be eligible for premium tax credits that significantly lower her monthly premiums.
Choice of plans: She will have access to a variety of plans with different benefits and costs.
Independence: She will be able to make her own decisions about her health insurance without needing your consent.

Comparing Coverage Options

Before making a decision, it’s important to compare your daughter’s options carefully. Consider the following:

Employer-sponsored insurance: If you have employer-sponsored health insurance, check to see if adding your daughter to your plan is affordable or if it makes more financial sense for her to purchase her own coverage through the marketplace.
Medicaid: Your daughter may be eligible for Medicaid if she meets certain income requirements. Medicaid provides free or low-cost health insurance to low-income individuals.
ACA marketplace plans: If your daughter is not eligible for Medicaid, she can purchase a plan through the ACA marketplace. She will be eligible for premium tax credits based on her income.

If you’re not sure which option is best for your daughter, it’s a good idea to seek assistance from a licensed health insurance agent. They can help you understand the different coverage options and find the one that meets your daughter’s needs.

Remember, it’s important for your daughter to have health insurance coverage. Encourage her to explore her options and find a plan that fits her budget and provides her with the coverage she needs.