Health insurance isn’t just something “nice to have”, it’s essential.

Under current rules, adult children can remain on their parent’s health insurance until age 26; however, each plan and employer may impose its own criteria on this eligibility decision.

NPR recently featured an NPR story that demonstrated how coverage arrangements can impact family situations.

Adding Your Parents to Your Plan

Parents need health insurance as they age or transition out of employment, such as when reaching retirement age or losing their jobs. Parents can either purchase individual policies themselves or join their children’s employer-sponsored plans – the process will vary depending on if you opt for individual or group policies.

Under current federal law, adults may remain on their parent’s insurance until age 26; some states extend coverage even further. It may not make financial sense for young adults living away from their home city/state to remain covered under their parents’ policies, as this would result in them paying a premium that may no longer apply to them.

If a parent loses their job or experiences another qualifying event, they have up to 60 days from that point in time to select a plan from the marketplace or apply for Medicaid or Medicare. If they miss this deadline, they will likely have to wait until open enrollment period occurs again before purchasing insurance.

Enrolling Your Parents in the Marketplace

The Affordable Care Act permits children to remain on their parents’ health insurance plan until age 26; some states extend this provision to married children as well. Most health plans don’t allow you to add your parents as beneficiaries on an individual plan.

If your parent’s current plan no longer covers you after turning 26, enrollment in a new plan during either the annual open enrollment period or during a special enrollment period will give you options. There may even be opportunities available on the marketplace where you could purchase individual or family coverage independently.

Your parents can apply for Medicare or Medicaid if they meet age and income criteria, with your help reviewing coverage options through eHealth, a licensed insurance broker with access to over 80 health insurers and 200 individual policies – providing a quick way for you to compare quotes online or over the phone and select coverage.

Enrolling Your Parents in Medicare or Medicaid

If your parents don’t qualify for coverage through an employer-provided plan or insurance marketplace, they still may qualify for Medicare or Medicaid coverage. Although you can add them during an open enrollment period or special enrollment period for private plans, enrolling them directly requires their own effort and enrollment in these programs is up to them alone.

Some states are using Medicaid demonstration authority to expand enrollment of parents into the program. Under Obamacare, coverage was often limited or varied depending on where one lived; now poor parents in most states can qualify for Medicaid if their income meets income criteria.

Most parents 65 or over can enroll automatically in Medicare, which provides hospital and doctor coverage, or they might consider purchasing a Medicare Supplement Insurance policy to cover prescription drug costs. To apply for Medicare, your parents will need to complete form CMS-40B; those eligible for premium Part B (or premium-free Part A due to End Stage Renal Disease or ESRD should submit form CMS-L564); individuals seeking special enrollment periods due to exceptional circumstances must submit form CMS-10797.

Enrolling Your Parents in Your Employer-Sponsored Plan

Based on your parents’ circumstances, they may still remain covered under their health insurance plan until age 26 even if they change jobs. To find out more, reach out to either their employer or plan administrator.

Children may remain on their parents’ plan until they turn 30, depending on state law and other criteria like marital status or whether they claim them as dependents for taxes. If this applies to you, carefully weigh the costs involved with keeping them on your plan versus marketplace or private plan options available (please refer to FAQ for more details).

Remind yourself that once a family member has been removed from your insurance plan, they can only rejoin during an open enrollment or special enrollment period (usually following the birth or adoption of a child or the retirement of one of your parents) where Medicare or Medicaid may become applicable to them.