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Can My Health Insurance Drop My Children?

Childrens' health care is expensive, and the American Academy of Pediatrics recommends that children visit the doctor for health check-ups more than 30 times by age 21. These wellness checks, combined with emergency and sick care, can cost parents a small fortune without adequate insurance coverage. Fortunately, the passage of The Affordable Care Act in 2010 assures parents that they won't face insurance rescission should their children fall ill.

  1. Rescission

    • Effective under the Affordable Care Act of 2010, your health insurance company cannot drop you or your children if you become sick. Prior to passage of the law, insurers commonly dropped policy-holders when they became ill by carefully searching for errors in their insurance application or other discrepancies that could warrant disruption of coverage. Now, this rescission of insurance is illegal and health insurance companies cannot drop anyone at the onset of an illness or medical disability.

    Fraud

    • The Affordable Care Act makes an exception for health insurance companies who rescind health coverage for individuals guilty of fraud. According to healthcare.gov, fraud is intentional misrepresentation of a fact. For example, if you lie about a pre-existing health condition or fail to mention your list of current prescription drugs, your insurer may revoke your health coverage retroactively to the beginning of your policy.

    Age Limitations

    • Your health insurer cannot drop your children from your insurance once they reach adulthood. Under the Affordable Care Act, adult children under age 26 can remain on their parents' health insurance policies as a dependent regardless of financial or marital status. Additionally, if the child ages off an employer-sponsored policy at age 26, he can continue coverage under the same health plan for up to 36 months under COBRA.

    Considerations

    • The Affordable Care Act not only prohibits insurance companies from dropping your children, but it also implements other protections for children under age 19. For example, the law stops insurers from denying benefits to your children based on pre-existing conditions. Additionally, insurers must provide your children with access to preventive care, such as routine immunizations, wellness-checks with a doctor and health screenings at no out-of-pocket cost to you.

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