Most children obtain health insurance as dependents on the policy of a parent. However, many young adults are not yet able to afford their own policy and may end up without coverage. To combat this problem, the majority of insurance companies in Illinois will allow adult children to remain on their parents' health insurance policy until they reach a certain age.
Affordable Care Act
The Affordable Care Act of 2010 requires insurance providers in all states to extend the age limit on dependent coverage for adult children. Under this law, insurance companies that offer coverage for dependent children must continue to offer this coverage until the child reaches age 26. Employers and families share the cost of this extended dependent coverage.
Eligibility
Young adults will be eligible for coverage on their parents' policies until age 26 regardless of their marital status, enrollment in school, financial status and residency. Until 2014, only young adults who are not eligible for employer-sponsored coverage will qualify. After 2014, however, young adults will be able to remain on their parents' policies regardless of whether they have access to other insurance.
Military Veterans
In Illinois, military veterans can remain on their parents' insurance policies as dependents until age 30 if they meet certain conditions. Young adult veterans over age 26 must be unmarried and a resident of the state of Illinois, but they do not have to enroll in school. Veterans with a dishonorable discharge do not qualify for extended dependent coverage.
Considerations
The Affordable Care Act does not affect employers without dependent coverage included in employee insurance policies. Though the law requires employers who provide coverage for dependents to cover adult children up to age 26, the employer is not required to pay the total premium. However, the cost of paying for a dependent child's coverage will typically be more affordable than purchasing a separate policy.
Tags: dependent coverage, their parents, adult children, Affordable Care, remain their, remain their parents
