What are my health insurance options after loss of “dependent” status?

When young adults and lose their status as dependents on their parents’ health plans, they worry about health insurance coverage. However, there is no need to panic. Both undergraduate and graduate students will be able to find health insurance offered by colleges and universities. When this option isn’t available, there are several other choices that are suitable for young adults searching alternatives for health insurance.

A child may no longer be classified as a dependent when:

• If the child moves outside the United State

• The child is eligible for group health insurance through his/her employer or the military

• The child reaches the plan’s maximum dependent age limit. (Typically between ages of 23 and 25)

• The child reaches the plan’s dependent age limit and ceases to attend school full time.

Option #1: COBRA: The Consolidated omnibus Budget Reconciliation Act is a health insurance safety net for people who are leaving their jobs and want to continue their current group health insurance.

However, this can also be an option for young adults who were previously covered under a parents’ group health plan but later became ineligible because of age limit, or because they aren’t full-time students anymore.

Option #2: Short-term health insurance: In case of a serious injury or illness rather than a comprehensive day-to-day health insurance plan, short-term insurance policies are designed to be a low-cost safety net.

Keep in mind that with this coverage, you will have limited benefits and it will usually last only six months. However, if the child will soon be graduating and won’t be able to obtain health insurance through an employer right away, this is a potentially good option.

Option #3: Individual health insurance: This is an insurance policy that you will purchase on your own. This is probably the safest choice to go with. However, it is usually much more expensive than group health insurance, but if you are left with no choice, you should start shopping around for different individual policies.

Option #4: High-risk pool: This is a pretty good option for less health individuals who won’t be able to participate in COBRA or who can’t qualify for alternate health insurance on their own (purchasing an individual health insurance policy).