On September 23, an estimated 1.2 million young people up to age 26 will gain coverage through their parents' insurance plans.
According to a survey by the Affordable Health Insurance at the Commonwealth Fund (a private organization that focuses on health policy), adults ages 19 to 29 are the largest group of uninsured Americans yet they are least expensive to cover.
The survey claims that more than 75 percent of young adults surveyed were forgoing care because of the cost. Those who did seek treatment paid twice as much as people with insurance. In paying for care, 31 percent said they had postponed education or career plans to pay health-care bills and about half asked their parents for assistance.
As far as purchasing health insurance, it's almost out of the question for this age group.
Many young adults think they are healthy so they go without health insurance. But on the flip side, this group has higher risks for accidents.
Also, there might be several reasons for the lack of health insurance among younger adults. Many are just starting their careers. Their jobs might not offer insurance benefits and they don't yet make enough money to purchase insurance on their own. Young people might also be willing to take more risks with their health.
Most of the time, health insurance isn't a priority in a young adult's expenses. Also, their combined monthly expenses alone cost less than a monthly health-insurance plan.
Since young people make up nearly a third of all uninsured, the new law is a positive step for this age group.
Under the health-care reform law signed in March by President Barack Obama, all new health-insurance plans must offer extended dependent coverage. Some already existing policies will not have to offer extended dependent coverage but by 2014 all providers will offer dependent coverage.
New government regulations that go into effect Sept. 23 will allow young adults up to age 26 to join their parents' health-insurance plan. With extended dependent coverage, parents have the option of adding their adult child with little changes to their annual premium.
Previously, young adults who went to college were kept on their parents' health-insurance plan until they graduated, dropped out or reached a specified age (whichever came first). Young adults who did not go to college were removed after turning 19.
Young adults qualify even if they do not live with their parents, hold part-time or full-time jobs or are married, although their own spouses and children would not be covered. They can leave and rejoin their parents' plans as many times as they wish.
Young adults cannot stay on their parents' plans if they get a job with health benefits. They are not eligible if their parents are uninsured.
Most plans won't offer coverage until January 1 and some will begin coverage next summer. Some insurers have voluntarily provided early coverage for young adults due to graduation or "aging off" their parents' plans.
The new policy applies only to health insurance plans that offer dependent coverage in the first place.
Family premiums are projected to rise about one percent, according to the government but individual policies will vary widely.
Contact your insurer, employer or read about young adult coverage at www.healthcare.gov.
Sources:
www.healthcare.gov
U.S. Department of Health and Human Services
Commonwealth Fund
Consumer Reports
MC Ortega is the former publicist for the late Walter Payton, Coca-Cola and Dunkin’ Donuts. Ortega is a senior communications and messaging executive specializing in media relations, social media, program development and crisis communications. Also, Ortega is an avid traveler and international shopper. Ortega resides with her partner, Craig, dog, Fionne and extensive shoe collection. Ortega also enjoys jewelry design/production and flamenco dancing.