If you are just turning 26 this year, you will be considered, “aging off” of your parent’s health insurance plan. You have options:
If you’re aging off your parent’s Marketplace plan:
You can stay on your parent’s plan until coverage ends December 31, even if you turn 26 mid-year. But be sure to apply for your own Marketplace plan for next year by the Open Enrollment deadline, January 15. Act by December 15, 2021 for coverage that starts January 1, 2022. Your parent will also need to update their application showing you won’t be on their plan next year.
If you’re aging off your parent’s job-based plan:
Your coverage usually ends the month you turn 26. Even if it’s outside Open Enrollment, you’ll be able to get a Marketplace plan because losing other coverage qualifies you for a Special Enrollment Period. You’ll have 60 days before you lose coverage and 60 days after that to enroll. The Marketplace may ask you to provide documents to confirm you lost coverage.
Get Medicaid or Children’s Health Insurance Program (CHIP) coverage
You can apply for Medicaid or CHIP at HealthCare.gov any time. Medicaid and CHIP don’t have Open Enrollment Periods. If you have limited income or are pregnant, you could qualify for free or low-cost coverage through Medicaid or CHIP. If you have children, they might qualify for coverage under Medicaid or CHIP — even if you don’t qualify for Medicaid. When you fill out a Marketplace application, and request financial help, you’ll find out if you qualify for Medicaid or CHIP. If it looks like you qualify for Medicaid or CHIP, we’ll send your information to your state agency. They’ll contact you about enrollment.
What is COBRA?
If you are terminating your employment with a company whether voluntary or involuntary, the law allows you to extend your group health coverage through COBRA. You can remain on the COBRA extension for up to 18 months and in some cases it can be extended even longer. As an employee, you’re group health insurance premium is typically subsidized by your employer. When you elect COBRA, you will be responsible for the full cost of the premium plus an additional 2% administration fee and this can be very expensive.
How Does COBRA Work?
COBRA continuation coverage may give you the opportunity to purchase temporary extended health care benefits offered by your former employer while you are looking for a new job or during a waiting period for health benefits imposed by your new employer.
COBRA continuation coverage provides continuity of coverage because you generally stay in exactly the same plan you were on when first employed, with the same network of doctors and hospitals and the same deductible.
How Long Can You Stay on COBRA?
When electing COBRA continuation coverage as a result of losing employment or a reduction of hours, you are generally allowed up to an additional 18 months of group health coverage. In certain circumstances, consumers may extend COBRA continuation coverage up to an additional 36 months of group health coverage.
You may also extend COBRA continuation coverage longer than the initial 18-month period with a second qualifying event —e.g., divorce or death— up to an additional 18 months, for a total of 36 months.
COBRA continuation coverage may end earlier if:
- You do not pay premiums on a timely basis. For most carriers, you have up to 30 days to submit your late payment.
- The employer ceases to maintain any group health plan.
- You obtain health coverage with a new employer.
- You become eligible for Medicare coverage.
- Committing fraud.
- However, if Medicare entitlement, either Part A or Part B, is effective on or before the date of the COBRA election, COBRA continuation coverage may not be discontinued on account of Medicare enrollment, even if you enroll in the other part of Medicare after the date of the election of COBRA continuation coverage.
Eligibility for Medicaid or eligibility for Marketplace coverage does not make you ineligible for COBRA.
