Can young adults still remain on a parent’s health plans until age 26?

(Note that coverage does not have to extend to the dependent’s spouse or children. If a young adult has a child while still covered under their own parents’ health plan, they will likely need to secure separate coverage for the baby. And if they get married, they will likely not be able to add their spouse to their existing coverage. CHIP or Medicaid may be available for the baby, depending on income. And either of those events — marriage or the birth of a baby — would count as a qualifying event that would allow the young adult to disenroll from their parents’ health plan and enroll in a new health plan together with their spouse and/or new baby. The new health plan could be an employer-sponsored plan or a plan obtained in the marketplace/exchange.)

Special considerations: Provider networks and maternity coverage

If you don’t live in the same area as your parents, it might make more sense to shop for your own policy, since the provider network for your parents’ plan may be limited in your area. And although maternity coverage is now included on all plans, it’s not required for dependents on large group plans. Getting your own policy guarantees that you’ll have maternity coverage. If you’re not yet 26 and you still have coverage on a parent’s plan, you can shop for your own plan during the annual open enrollment period (in most states, that’s November 1 to January 15), or if you experience a qualifying life event, such as moving to a new area. You can also enroll in your own employer’s plan if that option becomes available to you.

Special enrollment periods to transition to your own plan

Losing coverage on a parent’s plan when you turn 26 is a qualifying event that triggers a special open enrollment period for individual health insurance, or enrollment in a group plan through your employer if you’re eligible. Your parents’ plan might cover you only until the end of the month in which you turn 26, or they might extend coverage through the end of the year you turn 26, so double-check with the plan to make sure you understand when your coverage will end (as noted above, if your parents have their coverage via HealthCare.gov, your coverage will continue through the end of the year in which you turn 26, unless you decide to terminate it before then).

You have 60 days before and after that date to enroll in a new individual plan (or 30 days to enroll in your employer’s group plan). The special enrollment period that allows you to sign up for a plan in the individual market applies even if you have the option to extend your coverage under your parent’s plan using COBRA.

You can shop in the exchange/marketplace or off-exchange — the special open enrollment window applies either way (as noted in the next section, premium subsidies are only available if you shop in the exchange). If you enroll during the 60 days before your loss of coverage, your new plan will be effective the first of the following month after your old plan ends, which generally allows for seamless coverage. But if you enroll in the 60 days following your loss of coverage, the soonest your new plan can take effect is the first of the month after you apply, meaning that you will have a bit of a gap in coverage.

Financial assistance

Depending on your income, you may qualify for premium tax credits (subsidies) that pay a portion of your premiums as long as you shop in the exchange. Subsidy eligibility also depends on the unsubsidized cost of the coverage. Here’s another FAQ that explains this in more detail, but know that subsidies are larger and more widely available from 2021 through 2025, due to the American Rescue Plan and Inflation Reduction Act. So self-purchased coverage is more affordable than it used to be.

There are also exchange policies available with lower cost-sharing requirements if your household income does not exceed 250% of the poverty level.

Catastrophic individual plans are available to applicants under age 30, with premiums that are generally lower than bronze plans. But premium subsidies are not available on catastrophic plans, so a “metal” plan is likely a better choice if your income makes you eligible for a premium subsidy.

Medicaid is also an option if you’re eligible. In states that have expanded Medicaid, you can qualify as a single person with an income up to $20,782 in 2024 (this is in the continental U.S.; the limits are higher in Alaska and Hawaii, and DC provides Medicaid coverage at higher income limits). Medicaid eligibility is tied to the federal poverty level, which is updated each year in January. Most states wait until March or April to begin using the updated FPL numbers for Medicaid eligibility determinations.

If your parents’ policy qualifies for COBRA continuation, you’re eligible to elect COBRA for up to 36 months after aging out of the coverage at age 26. But you’ll be responsible for the full cost of the coverage, plus an administration fee of up to 2%. In many cases, there are less expensive options available in the individual market. As noted above, the option to buy your own plan during a special enrollment period triggered by your loss of coverage is available even if you also have the option to extend your plan with COBRA.

The ACA’s impact

In September 2015, HHS released data regarding changes in insurance coverage across various demographics in the years before and after the implementation of the ACA. Determining exactly how many young adults have remained on their parents’ health plans is challenging, but we do know from the HHS data that coverage across young adults (ages 19 – 25) increased by 5.5 million people from 2010 through September 2015.

Nearly half of that gain (2.3 million people) occurred between 2010 and October 2013, before the bulk of the ACA’s reforms were implemented (exchanges, guaranteed issue coverage, premium subsidies, etc.). So it’s likely that a good chunk of those 2.3 million young adults gained coverage via a parent’s plan. Since then, the increase has likely been a combination of young adults remaining on their parents’ health plans as well as young adults purchasing their own plans in the exchanges.

There is still a substantial spike in the uninsured rate around age 19 and age 26.² The spike at age 19 is because Medicaid/CHIP eligibility guidelines are much more generous for people age 18 and younger, so many people no longer qualify for that coverage once they turn 19.³ The spike at age 26 is because young adults are no longer eligible for coverage under a parent’s health plan.

Louise Norris is an individual health insurance broker who has been writing about health insurance and health reform since 2006. She has written dozens of opinions and educational pieces about the Affordable Care Act for healthinsurance.org.

1. Young Adults and the Affordable Care Act: Protecting Young Adults and Eliminating Burdens on Businesses and Families FAQs. U.S. Department of Labor, Employee Benefits Security Administration. Accessed January 2024. ⤶
2. Health Insurance Coverage Among Young Adults Aged 19 to 34: 2018 and 2019. U.S. Census Bureau. ⤶
3. Medicaid, Children’s Health Insurance Program, & Basic Health Program Eligibility Levels. Centers for Medicare and Medicaid Services. December 2023. ⤶