False!
You have the option to stay on your parents’ insurance until age 26, but it isn’t required.
Thanks to the Affordable Care Act (ACA) enacted in March 2010, young people may stay on their parents’ health insurance policy until they turn 26. The ACA, also commonly referred to as “Obamacare,” has three primary goals:
- To make affordable health insurance available to more people
- To expand the Medicaid program to cover all adults with income below 138 percent of the federal poverty level
- To support innovative medical care delivery methods designed to lower the costs of health care generally
Being on a parent’s plan can work quite well for many young adults. Staying on your parents’ plan can be less work and provide financial and sustainability benefits if you have not yet secured a full-time job you plan on keeping for a while.
If staying on your parents’ plan is no longer an option or you are curious about what other benefits are out there, you are not alone!
Although the law enables people to stay on their parents’ plan until they are 26, people younger than 26 also may obtain health coverage independent of their parents. For young adults, the concept of having your own insurance policy can be scary and finding the right insurance plan can be confusing. However, there are benefits to pursuing your own plan.
For one, an insurance policy teaches independence. Choosing a policy requires research and an understanding of the scope of coverage, the network, and costs.
Also, doing your homework before committing to a plan can act as a precursor to other major decisions in life, such as buying a house.
In some cases, getting your own insurance can give you freedom from a limited network. A limited network means that visits only to certain doctors and health care providers are covered by insurance.
The network is usually limited by geography. By the time children are 18, many of them no longer live at home for the majority of the year. If you are still on your parents’ insurance policy, you might no longer be covered if you are out of your geographic network.
Because of this, many young adults who do not live at home wait to go to the doctor until they are back home visiting. But this does not always work. Illness will not wait for you to get home, and going to the doctor out of network usually means paying out of pocket.
Finally, an independent insurance policy allows the policyholder a larger degree of privacy and control. Doctor bills, test results, and more will remain more confidential when delivered directly to the policyholder. This privacy provides control and peace of mind. One facet of this control is that there are many options through which you can acquire insurance, including employer-based coverage, marketplace plans, educational coverage, and Medicaid.
If you choose not to stay on your parents’ plan and are looking into your own insurance options, HealthCare.gov is a great resource for information. If you choose to stay on your parents’ plan, there is information regarding your benefits on the site as well!