Inexpensive Health Insurance for Children

According to a 2009 report by the Kaiser Family Foundation and the Health Research and Educational Trust, health insurance premiums increased 131 percent between 1999 and 2009, and during the same time household income increased by only 38 percent. The rise in premiums makes it more and more difficult for many families to afford health insurance for themselves and their children. Fortunately, provisions in the Affordable Care Act, as well as the availability of limited government health options, make it easier for parents to find inexpensive health insurance for their children.

Private Health Insurance

• If you carry health insurance through an employer, you can add your children to your health plan, though you may be responsible for paying the premium. If you cannot afford the premium or you do not have access to health insurance through an employer, you can shop for private health insurance with fewer benefits, but at a more affordable rate. Additionally, no insurance company can deny private coverage to your children because of pre-existing conditions thanks to provisions in the Affordable Care Act of 2010.

Considerations

• Enrolling your children in the most affordable health insurance plan may reduce your premium, but it will also reduce your benefits. You will likely pay much higher deductibles, co-insurance and office co-pays. However, the law requires insurance companies to provide all policy holders with certain preventive benefits with no out-of-pocket charges. For children, these benefits include well-child doctor visits, routine childhood vaccinations, hearing screening, blood pressure monitoring and other preventive measures.

Government Options

• The federal government provides low-income families with access to health benefits according to household size, income, assets and health needs. Children in families with very low income may qualify for Medicaid, which provides free medical care at participating health care providers. Children of families with incomes higher than Medicaid eligibility guidelines may qualify for the Children's Health Insurance Program, or CHIP. This program provides comprehensive health benefits to children under age 19 at free or reduced costs. Though Medicaid and CHIP are federal programs, the states are responsible for their regulation, as well as producing guidelines for qualifying for the programs. For more information about Medicaid and CHIP in your state, contact your state's Department of Health and Human Services.

Adult Children

• Under The Affordable Care Act, you do not have to purchase expensive private health insurance for your adult children once they reach age 19. Previously, many health insurers dropped children as dependents on a parent's policy between ages 19 and 21, or once the child graduated college. Now, you may keep your children on your health insurance policy as a dependent until age 26, regardless of whether or not your child attends college, is married or lives with you. Additionally, your insurance company cannot charge higher premiums for adult children than for minor dependents, resulting in a significant discount than purchasing a private health plan.