Turning 26 and Losing Health Insurance: Understanding Your Options

As you approach the age of 26, you may face the challenge of losing your health insurance coverage under your parents’ plan. This can be a stressful time, especially if you rely on health care to manage your health conditions. However, there are several important steps you can take to ensure you have continued access to the care you need after you turn 26.

ACA and Health Insurance for Young Adults

The Affordable Care Act (ACA) has made it easier for young adults to stay insured. Under the ACA, you are eligible for coverage under your parents’ health insurance plan until the end of the month in which you turn 26. This is known as a “qualifying event” that allows you to enroll in a new health plan outside of the open enrollment period.

Finding a New Health Plan

Once you turn 26, you will need to take action to enroll in a new health plan. There are several options available to you:

Employer-Sponsored Health Insurance: If your employer offers health insurance benefits, you should consider enrolling in their plan. Employer-sponsored health insurance is often more affordable than purchasing a plan on your own.
Health Insurance Marketplace: You can also purchase health insurance through the Health Insurance Marketplace at HealthCare.gov. The Marketplace offers a variety of plans from different insurers, and you may be eligible for subsidies to help lower your premiums.
Private Health Insurance: You can purchase health insurance directly from a private insurer outside of the Marketplace. However, these plans may be more expensive than plans purchased through the Marketplace.

Affordability and Financial Assistance

The cost of health insurance is a major concern for many young adults. However, there are several programs and resources available to help make health insurance more affordable:

Premium Tax Credit: The Premium Tax Credit is a tax credit that helps reduce the cost of health insurance premiums for low- and moderate-income individuals and families.
Cost-Sharing Reductions: Cost-Sharing Reductions are subsidies that help reduce the cost of deductibles, copayments, and coinsurance for low-income individuals and families.
Medicaid Expansion: Medicaid is a government-funded health insurance program for low-income individuals. Many states have expanded Medicaid eligibility under the ACA, making it available to more young adults.

Maintaining Coverage for Pre-Existing Conditions

The ACA prohibits insurers from denying coverage or charging higher premiums based on pre-existing conditions. This means that you can enroll in a new health plan without worrying about being denied coverage for any health conditions you have.

Seeking Professional Help

If you need help finding a new health plan or understanding your health insurance options, you can seek assistance from a licensed insurance agent. These agents can provide you with personalized advice and help you find the best plan for your needs.

Turning 26 and losing your health insurance can be a challenging experience. However, by understanding your options and taking the necessary steps, you can ensure that you continue to have access to the care you need.