Get Premium Tax Credits for Your Adult Child After Losing Coverage

Losing health insurance coverage can be stressful, especially if you have dependents who rely on you for financial support. If your adult child is about to lose their employer-provided health insurance, there are options available to help them get coverage through the Affordable Care Act (ACA) marketplace.

What are Premium Tax Credits?

Premium tax credits are financial assistance that can help lower the cost of health insurance premiums for individuals and families. These credits are available to people who meet certain income and household size requirements.

Eligibility for Premium Tax Credits After Losing Employer-Sponsored Coverage

Your adult child may be eligible for premium tax credits if they:

Lose employer-sponsored health insurance coverage
Are not eligible for other government health insurance programs, such as Medicare or Medicaid
Meet the income and household size requirements

Applying for Premium Tax Credits

To apply for premium tax credits, your adult child will need to enroll in a health insurance plan through the ACA marketplace. They can do this by visiting HealthCare.gov or by contacting a licensed insurance agent.

When applying for coverage, your adult child will need to provide information about their income, household size, and any other relevant factors. They may also need to submit pay stubs or other documents to verify their income.

Income and Tax Dependency Status

For the purposes of determining eligibility for premium tax credits, income and tax dependency status are based on the calendar year. This means that even though your adult child was claimed as a dependent on your tax return for 2021, their eligibility for premium tax credits in 2022 will be based on their income for 2022.

Losing Coverage Due to a Special Enrollment Period

If your adult child loses employer-sponsored health insurance coverage due to a special enrollment period, such as losing a job or moving to a new area, they may be eligible for a special enrollment period to enroll in an ACA marketplace plan. This special enrollment period typically lasts for 60 days after the qualifying event.

Getting Help

If your adult child needs help enrolling in an ACA marketplace plan or determining their eligibility for premium tax credits, they can contact a licensed insurance agent or visit HealthCare.gov.