ACA Insurance for Young Adults: Understanding Your Options

The Affordable Care Act (ACA) has made it easier for young adults to access health insurance. Before the ACA, many young adults were uninsured because they were not eligible for employer-sponsored insurance and could not afford individual plans. The ACA created new options for young adults to get affordable health insurance, including:

Staying on a parent’s plan until age 26: Most health insurance plans allow young adults to stay on a parent’s plan until they turn 26, even if they are not living at home or financially dependent on their parents.
Getting coverage through Medicaid or CHIP: Medicaid and CHIP are government programs that provide health insurance to low-income individuals and families. Young adults who are not eligible for employer-sponsored insurance or cannot afford individual plans may be able to get coverage through Medicaid or CHIP.
Purchasing a plan through the Health Insurance Marketplace: The Health Insurance Marketplace is a government website where individuals and families can shop for and purchase health insurance plans. Young adults who are not eligible for employer-sponsored insurance or cannot afford individual plans may be able to find an affordable plan through the Marketplace.

Can employers require employees who receive health coverage through a parent’s plan to elect employer-sponsored coverage?

The ACA does not require employees to elect employer-sponsored health insurance coverage if they have other qualifying health coverage, such as coverage through a parent’s plan. However, some employers may have policies that require employees to elect employer-sponsored coverage if it is offered.

If an employer requires an employee to elect employer-sponsored coverage, the employee may be able to waive the coverage if they have other qualifying health coverage. To waive the coverage, the employee must provide the employer with proof of other qualifying health coverage.

If an employee waives employer-sponsored coverage and later loses their other qualifying health coverage, they may be able to enroll in employer-sponsored coverage during a special enrollment period. Special enrollment periods are available for employees who lose other qualifying health coverage, such as coverage through a parent’s plan.

It is important to note that the ACA does not prohibit employers from offering incentives to employees to elect employer-sponsored coverage. For example, an employer may offer a higher salary or other benefits to employees who elect employer-sponsored coverage.

If you are a young adult who is not sure how to get health insurance, you can get help from a licensed agent. A licensed agent can help you understand your options and find an affordable health insurance plan that meets your needs.