Why Staying on Your Parents’ Health Insurance Matters for College Students
This article discusses staying on parents health insurance as a college student. It covers essential topics such as eligibility, different coverage options, and what to do if your parents’ plan doesn’t cover you.
Healthcare can be expensive in the United States. Without student health insurance, medical bills can quickly add up. Health insurance helps cover medical costs, so you don’t need to worry about unexpected medical bills affecting your education or daily life.
However, health insurance can be very expensive. Insurance companies usually charge young adults more for individual coverage. This is particularly true if you don’t have a full-time job with benefits.
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A smart financial choice that can save up to $1,000 or more per year is staying on parents health insurance as a college student.
While this decision is deemed to make you dependent on them or not fully independent as an adult, staying on parents health insurance as a college student can also give you better coverage. You’ll still get access to various services like:
- preventive care
- mental health support
- prescription drugs
These services are typically add-ons in other marketplace health insurance for college students. You might need to add more costs or purchase extra coverage to avail of these services. The money you’ll spend on extras might as well go to other expenses like tuition, books, food, and transportation.
However, not everyone will be fortunate enough to stay on their parent’s plan.
Related Articles:
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- The Pros and Cons of University Student Health Insurance Plans (SHIPs)
- What Are Health Insurance Subsidies for Low-Income Students
- How to Qualify for Premium Tax Credits as a Low-Income College Student
Eligibility for Staying on a Parent’s Health Insurance
Before the Affordable Care Act or Obamacare, young adults usually had to drop off their parent’s health insurance plans at age 19 or 23. But thanks to the ACA, you can stay covered by your parent’s plan until you turn 26.
However, there are a few situations where parents health plan coverage for students below 26 years old might change:
Marriage
Getting married can sometimes affect your eligibility to stay on your parents’ plan. In some cases, marriage may disqualify you from being covered under their insurance, especially if your spouse has their own health coverage.
Having Children
The birth of a child can also impact your ability to remain on your parent’s health insurance. Depending on the plan’s terms, you may still be eligible to stay on their coverage, or you could add your child to their plan. It’s important to confirm with the insurance provider to navigate the specific options available to you.
Losing Dependent Status
If you become financially independent and are no longer listed as a dependent on your parent’s tax return, you may lose eligibility to remain on their health plan. This often happens if you are financially self-sufficient, such as through full-time employment or other income sources, and are no longer considered a dependent for tax purposes.
While the ACA has made it easier for young adults to stay covered, it’s important to be aware of these specific situations where the rules might change. Always consult your health insurance provider for guidance on your eligibility and any potential changes to your coverage.
Differences in Coverage for Full-Time vs. Part-Time Students
Staying on parents health insurance as a college student might also change depending on your enrollment status.
Full-Time Student Health Insurance Coverage
Full-time students often have more comprehensive coverage options when staying on their parent’s health insurance plan. Many health plans, including those from employers or through the ACA, offer benefits specifically for full-time students. These benefits might include:
Campus Health Services Access
Some plans may provide access to on-campus health services. This might include benefits like doctor visits, mental health counseling, or urgent care. These services can be more convenient for students.
Lower Premiums
Full-time students are often considered dependents under their parents’ plans. This means that they may benefit from lower premiums than individual student plans.
Health Insurance Flexibility
Many plans allow full-time students to continue coverage during the summer months or between school terms as long as they maintain full-time enrollment status.
Part-Time Student Health Insurance Coverage
Part-time student health insurance options can be more complicated. ACA rules allow students under 26 to stay on their parent’s plan regardless of enrollment status. However, some health plans may have restrictions or different coverage levels for part-time students. These might include:
Limited Benefits
Part-time students may not have access to the same on-campus health services or have fewer preventive care options under the plan.
Coverage Gaps
Some health insurance plans may only provide full coverage to students who are enrolled full-time. Part-time students face higher out-of-pocket costs or limited access to certain health services.
Specific Enrollment Requirements
Some plans require minimum credit hours or specific enrollment statuses to qualify for coverage. Be sure to check your health insurance provider’s policy to understand how part-time enrollment affects your coverage.
Understanding Enrollment Status Requirements
As mentioned earlier, college student health insurance requirements will also vary on the student’s enrollment status. Many health plans require students to be enrolled in a minimum number of credit hours. Let’s discuss how enrollment status affects health insurance coverage.
Attending college full time usually incurs 12 or more credit hours per semester, although this can vary by school. Health insurance plans often offer broader coverage for full-time students, recognizing that they are more engaged in their studies and generally enrolled in more credit hours.
This higher level of engagement can also mean they are more likely to need ongoing healthcare. Because of this, insurers tend to provide more comprehensive coverage for them, anticipating a greater need for consistent care. Full-time enrollment is seen as a stable status, which may align better with continuous coverage and lower premiums.
Meanwhile, a part-time student typically takes fewer than 12 credit hours per semester. These students are “less engaged,” which means they may be less likely to require frequent or ongoing healthcare services.
The difference in coverage between full-time and part-time students comes down to how insurance companies assess health risks and predict healthcare needs.
Full-time students are considered more likely to need regular healthcare. They typically get more consistent and comprehensive coverage.
In contrast, part-time students are seen as having more unpredictable healthcare needs. This can result in more limited coverage or higher costs.
When Students May Need Additional Coverage
Staying on parents health insurance as a college student might not always be the best option. Here are some situations where you may need additional coverage:
You Live Outside The Plan’s Network Area
If you’ve moved out and are living on your own, you can still stay on your parent’s plan until you turn 26. However, if the plan only covers a certain network of doctors, that could be a problem. You might not be near those doctors, meaning you’d have to travel long distances just to see a provider.
If you’re okay with being limited to a smaller group of doctors, a plan like an Exclusive Provider Organization (EPO) might save you money. However, it could be more hassle if you’re not close to those in-network providers.
Your College Offers Specific Campus Health Services
Many colleges provide health services tailored to student needs, such as routine check-ups, vaccinations, and care for minor illnesses and injuries. These services are designed to be convenient and cost-effective. Plus, they’re often included in student fees or available at a reduced cost.
However, campus health centers may have limited hours. They might also not offer specialized care for conditions that require ongoing treatment or more complex procedures.
Additional coverage may be necessary for students with chronic conditions or those seeking specialty care to ensure access to off-campus providers. Campus health services are a great starting point, but they may not be sufficient for all healthcare needs.
You’re Eligible for Financial Assistance
Some students may qualify for financial assistance programs or subsidies through the ACA, which can lower the cost of health insurance. If your family’s income has changed or you are considered independent, you may be able to find a better but affordable plan through the marketplace. Additionally, some schools have partnerships with insurance providers that offer affordable coverage to students, often with no waiting periods for medical care.
Your Employer Offers Better Coverage
If you’re working already, check out what your job offers for health insurance. Sometimes, depending on your health needs, your employer’s plan might be better than staying on your parent’s plan. When open enrollment comes around, you can switch from your parent’s coverage to your own if your employer’s plan works better for you.
You Get Married Or Have a Baby
Getting married or having a baby lets you drop off your parent’s plan and sign up for your own, which can also cover your new family. If money’s tight, Medicaid or CHIP could help cover your spouse or baby. You could also apply for an ACA plan that covers you and your family, especially since there are subsidies if your income is low.
These are just a few situations where it might make sense to look for extra health insurance options for college students or switch to your own plan.
How to Verify Your Health Coverage with Your Parent’s Provider
Health coverage for college students on parents plan can be beneficial. It’s important to verify your coverage to ensure you’re fully protected. Here’s how you can confirm your health insurance details:
- Contact your parent’s insurance company via customer service or their website for coverage details.
- Confirm if you’re still eligible to stay on your parent’s plan. Typically, the age limit for staying on parents health insurance is 26, but some plans may have exceptions.
- Ask about what’s covered (doctor visits, prescriptions, etc.), in-network providers, and coverage outside your home state, especially if you’re studying out-of-state.
- Inquire about co-pays, deductibles, premiums, and out-of-network care limits, particularly if you live away from home.
- If your situation changes (e.g., turning 26 or becoming a full-time student), ask if you’re eligible for a special enrollment period to update your coverage.
You’ll need to find alternative options when you lose coverage on a parent’s health plan.
ACA Marketplace
The ACA Marketplace offers plans in four levels: bronze, silver, gold, and platinum. Bronze and silver plans have lower premiums, while gold and platinum provide more benefits. If your parents don’t claim you as a dependent, you may qualify for subsidies based on your income.
Other Options
- Student Health Insurance: This is a good choice for students with limited budgets. Check if your school offers a plan.
- Employer Health Plan: If you’re working full-time, ask about health benefits. Large employers often offer coverage for dependents.
- Spouse’s Plan: You might be eligible for coverage under a spouse’s plan. Compare it to your parent’s plan to see if it’s better.
- Medicaid: If you have low income, you may qualify for Medicaid. You can apply through your state or the Marketplace.
- Catastrophic Health Insurance: If you’re under 30 and on a tight budget, this plan covers emergencies and essential services but has a high deductible.
- Short-Term Plans: These provide temporary coverage while you search for a long-term plan, often at an affordable rate but with limited coverage.
Conclusion: Making the Right Decision for Your Health Insurance Needs
Staying on your parent’s health insurance can be affordable for college students. You can remain on their plan until age 26, with coverage for preventive care, mental health services, and prescriptions.
Eligibility may change due to several reasons, such as:
- Marriage
- Children
- Financial independence
- School status
Explore other options, such as your school’s plan, Medicaid, or the ACA marketplace, if necessary. Always confirm your coverage and assess your healthcare needs.