Getting Your Adult Children Off Your Health Care Plan
One of the first changes of health care reform (The Patient Protection and Affordable Care Act) effects people under the age of 26. Previously, once a person turned 19 and was no longer a full time student, he could not be covered under his parents’ health care plan. What this meant is that people in their 20’s often went uninsured. However, effective September 23, 2010 a person can remain on their parents’ health insurance plan until the age of 26. That is certainly better than being uninsured, but it is the most affordable option for parents? Probably not. self employed health insurance. Here is the case for getting young adults their own health insurance plan:
1) Young people are generally healthier and do not go to the doctor as often as their parents. This means that a young person’s health insurance rates are lower and the type of health coverage they require is much less than their parents. Yet, under their parents’ health plan, they are charged for the coverage needs of their parents. Sometimes the cost of remaining on a parent’s health plan is as much as double the cost of purchasing a health care plan of their own, for services they will never need. For example, a young man will never need maternity coverage. This all can amount to quite a savings and a parent would be wise to consider paying the cost of an individual health insurance plan for their child. Tonik is a health insurance carrier offering affordable plans for young adults, Click here for a quote.
2) Accidents happen. Young people might be healthier, but they are more accident prone. Broken legs, shattered knee caps, concussions, the list goes on. Young adults involved in dangerous sports or hobbies, or who perform odd, labor intensive and physical jobs can sometimes cause an increase in claims on their parent’s health plan. This affects already inflated rates. Read our blog about casts.
3) The unknown job market. Traditionally, young adults remain on their parents’ health care plans until they get a job, at which point health benefits will be provided through their employer. But, the economic strive of the last 4 years has changed the job market, possibly forever. Who knows when a child will enter the work force, and what the character of his employment will be. He may be an independent contractor or temporary employee and never receive insurance under a traditional employer sponsored health plan. Having his own health insurance plan protects him from being uninsured. Read our blog about independent contractors.
4) Rate increases as a result of reform. The effects of health care reform on health insurance rates are unknown and cannot be fully measured before 2014, when reform is completely enacted, however, it is the consensus of many in the insurance industry that rates will increase considerably. Those that have an existing health plan may be grandfathered in and not be affected by health care reform rates. Avoid being one of the masses looking for insurance in 2014, get it now.