Health Insurance Can Now Cover Your Children Until They're 26
Under the new health care bill, U.S. citizens will be required to purchase health insurance or pay a fine, which, beginning in 2014, will be $95 for an individual and then increase until 2016, when it will plateau at $695 or 2.5% of a person’s annual income. This health reform may prove to be a challenge when it comes to “young invincibles,” individuals 30 and younger who typically can afford insurance but choose not to have it. Disproportionately uninsured, young adults, ages 19 to 29, comprise about 17% of population under 65 but nearly 30% of all uninsured Americans. Although many of these are so-called “young invincibles,” a large percentage of them are simply unable to afford insurance; almost 70% of all uninsured young adults are those who live in low-income households. At the same time, many of them work at jobs that do not offer employer- based health care, such as those beginning their careers in small companies. Fortunately, key provisions in the new health care legislation provide solutions for those younger citizens struggling to obtain affordable health insurance, one of the most significant of which will allow them to be covered under their parents’ insurance plans until they reach 26 years of age.
The Major Health Care Bill Revisions that Affect the Nation’s Youth
Several different aspects of the new health care legislation will cater to young citizens who would normally not consider getting insurance. Under the new bill, for instance, Medicaid coverage extends to more low-income adults. In most cases, these people now will not have to pay for coverage.
In addition, beginning in 2014, other uninsured citizens with little in their budget to spend on health insurance will have the opportunity to purchase discounted insurance plans through health insurance exchanges.
The key measure of the legislation, which requires employers to extend their coverage to their employees’ dependents until they are 26 years old, will officially take effect next year, in 2011. For those young adults who either cannot afford insurance themselves or are not provided employer-based coverage, this may be the best option.