Posted April 10, 2025 by Matt Baker, Director of Sales
Your mid-20s are a time of significant growth and independence as a young adult, establishing your career and exploring life’s options. Unfortunately, it’s also the time you age out of your parents’ health insurance.
The Affordable Care Act requires that health insurers allow young adults to stay on their parents’ insurance plan until they turn 26 years old. But then what?
Fortunately, you have several options and some time to consider them. Depending on your current plan, coverage can last until the end of your birthday month or the end of the year. Just be sure you give yourself plenty of time to shop and enroll to ensure there’s no gap in coverage.
Just like car and home insurance, health insurance provides critical financial protection if you get in a severe accident or become seriously ill. Even if you’re not sick or injured, health insurance can help keep your medical expenses down by offsetting costs for routine checkups, immunizations, cancer screenings and other preventive services.
With a little research and preparation, you can make aging out of your parents’ health insurance a lot less stressful — and scary — and perhaps even rewarding by enrolling in your own health plan. Giving yourself the gift of health insurance may just be your best birthday gift of all.
There are several ways to get health insurance coverage. You can:
If you’re working, employers typically offer group health insurance. Employer-sponsored plans usually offer more comprehensive coverage at more affordable prices than individual health plans because group health insurance allows you to split the monthly premium with your employer. However, only one health plan may be offered.
If you’re unemployed, self-employed or an employer-sponsored plan isn’t an option, you can enroll in an individual plan through the Affordable Care Act’s health insurance marketplace or directly from health insurance companies, such as SummaCare.
Thanks to the Affordable Care Act, every state, including Ohio, has a health insurance marketplace where various private individual and family plans can be purchased. The marketplace enables you to compare health insurance plans in your area, and ACA plans are eligible for premium tax credits and subsidies that can reduce your health costs. You also may qualify for Medicaid coverage.
You can extend coverage on your parents’ plan for up to 36 months by joining COBRA (Consolidated Omnibus Budget Reconciliation Act), a temporary health insurance option for young adults aging out of their parents’ coverage.
Unfortunately, COBRA can get very expensive because the employer doesn’t have to contribute to premium costs, making that amount your responsibility. COBRA plans may also include an administrative fee which increases the cost even more.
Short-term or temporary health insurance plans are meant to bridge brief coverage gaps, such as aging out of your parents’ insurance. They usually last a year, but you can request extensions. Typically, they have low premiums but high out-of-pocket costs, and many of these plans offer significantly less comprehensive coverage.
Loss of health insurance is considered a qualifying event, so you’re eligible for a Special Enrollment Period. This means you can sign up for another health plan without having to wait until the Open Enrollment Period, which runs the same time every year between Nov. 1 and Jan. 15.
Your Special Enrollment Period starts 60 days before you lose coverage and ends 60 days after. If you miss the deadline, you’ll have to wait to enroll until the next Open Enrollment Period.
Also, you may have to provide proof of your loss of coverage. Typically, this entails a letter from your previous provider stating coverage has ended due to age.
Choosing the right health insurance involves many key considerations, such as cost, healthcare needs and prescription coverage.
To find a plan that offers the best value and coverage for your specific needs and circumstances:
You can research individual and family plans on the ACA’s marketplace, HealthCare.gov, or work with a licensed insurance agent to compare coverage, estimate out-of-pocket costs and get your questions answered.
Select the plan that best aligns with your healthcare needs and budget. For example, if you access care frequently, you may choose a plan with higher premiums but that covers more healthcare costs when you receive medical treatment. On the flip side, other plans may offer lower premiums, but you will have to pay more for routine care.
Many plans include additional health and wellness benefits, such as discounts on gym memberships, health coaching, preventative care like flu shots and more. Taking advantage of these extras can help you be proactive about your health.
You’ll pay many types of costs for health insurance, so when comparing plans, be sure you understand the out-of-pocket expenses, such as premiums, deductibles, copayments and out-of-pocket maximums.
If you’re unsure what your options are, talking to a health insurance agent is the best place to start. They can help you understand your options, compare plans, review plan documents and even enroll.