What You Should Know About Health Insurance After Age 26

If you're in this boat and confused about what to do next, don't panic. There are specific steps to take to make sure you secure your own health insurance for when you need it.

How Long After You Turn 26 Can You Stay on Your Parents' Insurance?

The Affordable Care Act (ACA) allows you to stay on your parents' health insurance until you turn 26, whether you live with them or not, are single or married, reside in the same state or across the country.

You turn 26, and things change. Some health insurance plans remove you on your 26th birthday, while others give you a grace period until the end of the month following your birthday. Others even let you stay on your parents' plan until the end of the year.¹

Find Out When Your Health Insurance Coverage Will End

You need to contact the insurance company that holds the plan you have before your 26th birthday so you don't end up without coverage. If you procrastinate, you could end up with a huge medical bill, or even a fine. If you're without insurance for more than three months after you turn 26 the government could fine you, depending on the state you live in.²

Health Insurance Options for 26-Year-Olds

For those who age out of coverage under a parents' policy, there are several options for healthcare.

Employer Coverage. If you have a job that offers health insurance, talk to your human resources department about the plan or plans they offer, the cost, and different levels of coverage. Your 26^th birthday serves as a qualifying life event which means you shouldn't need to wait until your employer's next open enrollment to enroll.
COBRA Insurance. COBRA stands for the Consolidated Omnibus Budget Reconciliation Act, and it allows you to stay on your parents' healthcare plan for up to three years after you turn 26. However, you may need to pay more for your coverage. In calculating COBRA premiums, the plan can include the costs paid by both the employee and the employer, plus an additional 2 percent for administrative costs. If you're eligible, you'll have to submit a written request to your parents' healthcare provider within 60 days of your 26^th birthday. If your parents' coverage is through a very small employer (fewer than 20 employees), the company may be exempt from having to offer COBRA insurance, but some states may offer similar options.
The Health Insurance Marketplace. A third option is the federal government's marketplace, which offers health insurance plans to individuals, families, and small businesses. The marketplace is an outcome of the Affordable Care Act and has guidelines around the costs and coverage of the plans insurers can offer. Premiums may be subsidized for those with lower incomes. Some states (like California) have their own marketplaces, called exchanges which may be an option.
Medicaid. If you fall under a certain income threshold or have certain disabilities, you may qualify for Medicaid, a federal and state program that offers health coverage for those with limited financial resources. Check your state's Medicaid website to see if you qualify.²

Choosing health insurance can seem overwhelming if you're doing it for the first time. But it doesn't have to be if you know your options.

Managing Healthcare Costs with CareCredit

If you are looking for an option to help manage your medical bills, consider healthcare financing with the CareCredit credit card. The CareCredit card can help you pay for the care you want and need and make payments easy to manage.* Apply today and use our Acceptance Locator to find a provider near you that accepts CareCredit. Continue your wellness journey by downloading the CareCredit Mobile App to manage your account, find a provider on the go, and easily access the Well U hub for more great articles, podcasts, and videos.

Our Expert Reviewer

Patty Caballero and her team of consultants together have more than 35 years of health insurance knowledge working for some of the biggest health insurance companies in the US. She has knowledge in building brands and strategic initiatives to help consumers better understand their health benefits.