HMO vs PPO with Independence Blue Cross

Young Adults Insured Under Parent Plans

It is important to have an insurance policy when an accident or illness occurs. In the state of Pennsylvania under the Affordable Care Act (ACA), young adults are permitted to be under parental insurance plans as a dependent till the age of 26 regardless of whether they;

  • Resides with parents;
  • Are claimed as a dependent on taxes;
  • Have a full time job;
  • Are eligible for employer sponsored health insurance;
  • Are enrolled in school; and
  • Are married

It is important to understand health insurance coverage options as coverage on a parent plan may be more costly to the parent than single coverage for the young adult through their employer-sponsored plan.

If an employer-sponsored plan is available, the young adult should consider it, as it can offer a wide range of coverage, including preventative care, that could suit their individual needs better than their parent’s plan.

Risks of Being Uninsured

It is incredibly important for a young adult to find new insurance once they officially age off their parent’s plan. According to the Centers for Medicare & Medicaid Services, 30% of young adults are uninsured. Additionally, 1 in 6 have chronic illnesses such as cancer, diabetes, or asthma. Without insurance, medical care and specialty drug treatments will be costly, causing financial trouble if uninsured. Without coverage, 100% of responsibility falls upon the uninsured individual. Using an employer-sponsored insurance plan provides convenience in making coverage more affordable and easier to obtain.

If you have questions about your employer’s insurance coverage, please contact your dedicated Creative Benefits Inc. team.