Does the title of this article strike you as cruel? Well, the sad truth is that with rising costs of healthcare often comes the need to cut corners, even if it is making changes like removing kids that are in college or older off of your policies.
Because of the Affordable Care Act, parents can keep their children on their plans until they reach 26 years of age, but is this the smartest option for all involved? If a parent has a child that is in their mid twenties, odds are that parent is going to be looking into retirement options rather soon, which could imply that the adult child will require getting coverage on their own shortly anyway.
According to CNBC, most employers that offer insurance provide lower rates and more coverage options to the actual employee only, then offer less options for care to the dependents on the same plan.
If your adult child works full time somewhere, it may be more beneficial for them to obtain coverage through their employer for this reason. Their care may be cheaper, and they could take advantage of other company programs that are only provided to those employees that opt for coverage. It’s a simple trip to the Human Resources office for either you as the parent, or them as the child to inquire about which options make the most sense. You can receive the paperwork you would both need to match pricing and benefit packages, and then make a wise decision from there.
Do keep in mind that most heath insurance changes have to be made at certain times of the year through the employer enrollment period. Whatever you both decide, don’t lose any coverage for a few months as that will end up being quite expensive should your child require hospitalization.