Hello there, amazing parents!
As your children embark on the journey into adulthood, you may find yourself facing a myriad of questions and concerns, especially when it comes to topics like health insurance, finances, and overall support.
In this Q&A guide, I’ll address some common queries to help you navigate this exciting but often complex time when your kids are turning 26; primarily what the heck to do about their health insurance!
Q: Do I have to keep my child on my health insurance until they are 26?
You don’t have to, but you can. Thanks to the Affordable Care Act, children can remain on their parents’ health insurance plans until the age of 26. This extension provides a safety net for young adults who may still be studying, starting their careers, or exploring different paths.
However, it also depends on your health insurance plan. If it was not purchased from the public healthcare marketplace, or from your employer, private carriers may have different policies. Please check your policy and state laws to find out more about when your child is no longer eligible to be a dependent on your plan.
Q: What happens after my child turns 26? Can they still stay on my health insurance?
Once your child turns 26, they’ll no longer be eligible to stay on your health insurance plan. With some plans, this age is earlier, so make sure to check your specific health insurance policy.
However, they have options. They can explore employer-sponsored health plans from their place of work, or enroll in an individual plan through the Health Insurance Marketplace, or explore private medical insurance plans.
Q: Are there any penalties if my child doesn’t have health insurance after turning 26?
Although the individual mandate, a provision of the Affordable Care Act, removed the penalty that requires individuals to have health insurance coverage, some states still have bylaws that impact this fee. However, it’s essential to stay updated on any changes in healthcare laws, as these regulations may evolve over time. In most states, there is no more penalty.
Q: How can I help my child financially after they turn 26?
Financial support for your child after they turn 26 depends on your family dynamics and their individual circumstances.
You might consider assisting with budgeting, offering a stipend that may help towards paying their monthly premiums, or continuing to pay the premiums entirely.
Q: Should I still claim my child as a dependent on my taxes after they turn 26?
Once your child turns 26, they are generally no longer eligible to be claimed as a dependent on your tax return. However, exceptions may apply, so it’s advisable to consult with a tax professional to understand the specific rules and regulations.
As your child transitions into adulthood, supporting them through this pivotal period is crucial. Remember, open communication, understanding, and a willingness to adapt will be your greatest assets.
While answering these questions is a good starting point, every family is unique, so tailor your approach to the specific needs and aspirations of your child.
Feel free to schedule a call with me if you find yourself stuck or confused with the healthcare options available in the market for your child just turning 26.
If you are still feeling daunted and need some guidance on the best way forward for your kids when they turn 26, working with a health insurance advisor can be great! Book a call with me if you need help!