Per federal law, young adults may stay on a parent’s plan until the age of 26.
Several Options:
Individual ACA plans are available to the young adult when “aging off” of the parent plan. Coverage will be similar, as all ACA plans must include the ten essential benefits. What won’t be similar is the price, though the high price may be offset if the applicant qualifies for financial assistance.
Another option are Short Term Medical insurance plans (STM.) In Arizona, STM plans offer coverage for up to three years and cost less than half that of an ACA plan. Of course, they are less expensive for a reason. Typically, no pre-existing conditions present within the last five years are covered on STM plans, nor is maternity. Most STM plans do not cover annual physicals, well-care, etc, though lately more plans are offering such benefits. For the vast majority of young adults, and everyone else under 65 for that matter, STM plans are an excellent option for Arizona health insurance at a reasonable price. It cannot be stressed enough though the importance of understanding what is, and what is not, covered on the STM plan under consideration.
Employer Sponsored Group Health Insurance
If employed, most employers offer group health insurance to those employees working 30 hours or more per week. Some employers offer coverage to part-time employees as well.
Coverage Options, Loss of Employment
If a young adult loses group health insurance coverage because a parent loses coverage, or the young adult ages off the plan, COBRA will be offered. 36 months of COBRA is available. In a nutshell, COBRA is the same coverage the parent had, but the young adult pays the full individual/dependent premium. The COBRA premium amount is the same amount the employer was paying to insure the dependent, plus up to three percent for administrative fees.
Depending on the size of the employer, mini-COBRA may be available.
Medicaid/AHCCCS
If you make less than 138% of the federal poverty line you will likely qualify for AHCCCS. AHCCCS/Medicaid is actually very good coverage. In fact, the coverage is better than ACA plans or short term plans.
College Student Coverage
Check with your college to see if they offer a student plan. If so, coverage must comply with the ACA (Affordable Care Act.)
Bottom line for reasonably healthy adults: If you do not qualify for financial assistance through the ACA, do not have the option of employer group health, and don’t qualify for AHCCCS/Medicaid, a short term health insurance plan is likely the way to go. Short term plans may be in-force for up to three years, offer up to $2 million per year in coverage, and may include office visits and prescription coverage.