Under 26 -The Benefits of Staying on Your Parent’s Health Plan

Young adults have more options in choosing their health insurance than they did prior to the landmark legislation of the Affordable Care Act (ACA), also known as Obamacare

A steady salary carried more weight than so-called “fringe benefits”, forsaking their health to simply get through the employment door.

Entry-level jobs don’t offer any healthcare benefit and If they do, the employee’s share of costs can be a hardship for a minimum wage job, essentially pricing them out of the market altogether.

Foregoing health insurance in favor of paying other necessities, such as food and bills, has been a common behavior for quite some time…and, not only among the 26 year olds and under.

Most twenty-somethings are generally in good health, they rarely feel the need to visit the doctor, making health insurance nothing more than a mere afterthought

If you’re drowning in student loans, an unexpected and devastating illness or accident can rack up thousands to tens of thousands of dollars in hospital and doctor bills. How would you pay for them? It’s not a coincidence that over half of personal bankruptcies result from unpaid medical bills

Along with the option of buying health coverage through their employer (should it be offered), young people under the age of 26 can also choose to enroll in their parent’s health plan.

The advantage – they can get on the plan even if they’re married or are no longer a dependent…as well as purchase an individual plan on the health insurance open marketplace if they decide to do so

Another negative to not enrolling in a healthcare plan is the individual mandate, which states, per the ACA, that most people must maintain health insurance with minimum required coverage for themselves and their dependents or face a non-compliance penalty

If your income falls below the poverty line you will be exempt from that penalty

Should you decide to forego the insurance coverage and pay the penalty, keep in mind, you’ll still be responsible for any and all healthcare expenses you incur.

Check with your parent’s plan. If it offers dependent coverage, they can add you until you turn 26, with little or no restrictions. It’s well worth the consideration.

Other optional coverages you may want to learn more about include:• A catastrophic health plan designed to

financially protect those under 30 against worst-case scenarios like a serious accident or illness. For information, search “catastrophic” at healthcare.gov.

• If your employer’s insurance is unaffordable and your income falls below certain levels, you may qualify for a tax credit that reduces the overall cost of ACA plan coverage.

• Many states expanded eligibility guidelines for their Medicaid programs under the ACA, which means you could earn more and still qualify for Medicaid

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