Can I Stay on My Parents' Insurance If I Am Not Dependent?

Health insurance premiums are expensive, and, according to the New York Times, continue to rise as of 2011, making it difficult for some people to afford health insurance. If you are an adult under age 26, however, 2010 health care legislation may make it possible for you to remain on your parent's health insurance policy as a dependent until you reach age 26.

Dependency

• The federal government does not define what a dependent is for health insurance purposes, but instead health insurers decide who they consider dependents. However, most insurers at least accept children, adopted children and stepchildren of a policyholder for dependency coverage, though some have more lenient guidelines. If you do qualify as a dependent according to your parent's insurer's enrollment policies, your tax and financial dependency is unrelated to your eligibility to enroll as a dependent on your parent's health insurance plan. Insurers cannot turn you away because of your or your parent's income or tax-filing status.

Young Adults

• The Affordable Care Act of 2010 prohibits discrimination of age between dependents as well. All insurers that offer dependent coverage must extend coverage availability for the eligible children of policyholders until they reach age 26. Your parent's health coverage provider cannot charge you a higher premium because of your age, nor can the insurance company limit your coverage due to your adult dependency. Insurers cannot turn you away even if you are married or live across state lines. However, if you are age 26 or older, you may have to purchase your own private health insurance or opt for an extension of your dependent insurance benefits as a primary policyholder under COBRA.

Employer Coverage Exceptions

• Some financially independent adult children may not qualify for dependency enrollment on a parent's health insurance policy if they have access to another group health insurance plan through work. The exception is a grandfather clause in The Affordable Care Act that allows insurers to deny coverage to an adult child who qualifies for employer benefits only if the child's parent's insurance policy was in effect prior to the passage of the health reform law in March 2010. However, insurers can only take advantage of this exception until January 2014 when the grandfather clause expires.

Considerations

• If you qualify as a dependent for your parent's health insurance policy as an adult child, your health insurer does not have to extend coverage to your spouse or children. However, if you are a low-income earner, your children may qualify for free or reduced cost health insurance through the Children's Health Insurance Program or Medicaid program available through your state's Department of Health and Human Services. Eligibility varies by state and is only available to children under age 19, but enrollees receive comprehensive health benefits that cover hospital, doctor and emergency care, as well as vision and dental.