Getting your own health coverage when you turn 26

If you have health insurance under a parent’s plan and are turning 26, you need to take action to stay covered. If you don’t, you may have to pay a fee on your next federal tax return.

See your options below.

Enroll in your own job-based plan

If your employer offers health insurance you haven’t been enrolled in, losing your parent’s coverage qualifies you to enroll in the plan outside its yearly Open Enrollment Period. Contact your human resources representative before turning 26 to learn your next steps.

Note: If your employer offers health insurance but you decide not to enroll in it, you generally won’t qualify for a premium tax credit and other savings based on your income. You’d have to pay full price. Learn about the limited exceptions.

Enroll in your own Marketplace insurance plan

Your options depend partly on whether your parent’s plan is through the Health Insurance Marketplace or their job.

If you're covered by a parent's Health Insurance Marketplace plan

You can stay on your parent’s plan until coverage ends December 31, 2016, even if you turn 26 mid-year. You can enroll in 2017 coverage starting November 1. You must enroll by December 15, 2016 for your coverage to start January 1, 2017.

• If you’re not your parent’s tax dependent in 2017: You’re eligible for savings when you enroll in a Marketplace health plan, if you qualify based on your income. Most people who apply do qualify for savings — for either a Marketplace health insurance plan or Medicaid coverage.
• If you are a tax dependent for 2017: You can enroll in your own Marketplace plan but won’t be eligible for savings based on your income. You’d have to pay full price. You may qualify for Medicaid.

TIP

If you apply for 2017 Marketplace coverage separately, your parent will need to update their Marketplace application to state that you won’t be on their plan for 2017.

If you’re covered by a parent’s job-based plan

Your coverage will usually end during or shortly after your 26th birthday month. Check with the plan or your parent’s employer for the exact date.

When you age off a parent’s job-based plan, you qualify for a Special Enrollment Period to buy health insurance. Your Special Enrollment Period starts 60 days before you lose coverage and ends 60 days after.

• If you enroll before you lose coverage: Your new Marketplace plan can start as soon as the first day of the month after you lose coverage.
• If you enroll during the 60 days after you lose coverage: Your new Marketplace plan can start the first day of the month after you pick a plan.

Get coverage or pay a penalty

If you don’t have qualifying health coverage for more than 2 consecutive months of the year, you may have to pay a penalty for the months you’re uncovered.

Learn about the penalty for not having coverage.