Do You Have to Be a Full-Time Student to Stay on Your Parents' Insurance?

According to U.S. Census Bureau data, approximately two thirds of college students were still on their parents' health insurance plans as of 2007. Another 7 percent owned individual insurance or were enrolled in their college's health insurance plan. Six percent were on Medicaid or other public health insurance program, and 20 percent carried no health insurance whatsoever.

The Law

• The Affordable Care Act, the major health insurance reform legislation that passed in 2010, requires insurance companies to offer continued coverage to young people up to the age of 26. If your parents had coverage when you were a minor and coverage did not lapse, their health insurance carrier must continue to offer coverage for you, regardless of any preexisting conditions. As of December 2010, a constitutional challenge to the law was winding its way through the courts.

Application

• The law applies to all kinds of health insurance policies, including individual and family plans as well as workplace group plans. You can continue to stay on your parents' plan even if you are married, and you can stay on it even if you become eligible for group coverage at work or elsewhere.

Nonstudents

• The law applies to all young adults up to the age of 26, regardless of their status as full-time students. You do not need to be enrolled in college to qualify. You may, however, need to wait until the open-enrollment period if you are not currently covered under your parents' plan.

Alternatives

• In addition to staying on your parents' health plan, you can also consider a school health insurance plan, if your school offers one, or purchasing health insurance on your own in the individual market. If you are in good health, the last option can be very affordable for young people, especially when you set a high deductible. If you have a preexisting condition, you may need to explore the other two options.