While college students are not exempt from the Affordable Care Act’s (ACA) mandatory insurance rule that went into effect January 1, 2014, they do have more options for coverage under the ACA. College students can now stay on their parents’ health insurance plan until age 26—this is also true for non-students under age 26, and those under age 26 who are married or who are offered insurance through their employer.
What if My Parents Don’t Have Health Insurance or Are On Medicare?
College students whose parents don’t have a health plan or are on Medicare have the option of purchasing health insurance through school or through their state’s health insurance exchange (in participating states) or the federal exchange. Working students who earn between 138% and 400% ($11,490 and $45,960, respectively, in 2013) of the federal poverty level (FPL), and who are not listed as a dependent on their parents’ tax return may be eligible for a subsidy to help cover the cost of coverage.
It’s important to note that for actively enrolled students the health insurance mandate applies only to those who earn enough to have to file income taxes (just under $10,000, in 2013). So, if you’re working part-time and earning less than the income tax filing amount, or you’re not working at all, you are likely exempt from the mandatory health requirement.
What if I Can’t Afford Coverage?
Those who earn enough to be required to purchase insurance under the healthcare mandate and find that even the least expensive plan (bronze level) is unaffordable will have the option of purchasing a catastrophic policy for emergency services. The deductible with this type of plan is generally high, however: around $6,400.
What about Medi-Cal?
Medicaid may also be an option, depending on what state you live in, and depending on your income. While some states have agreed to expand their Medicaid programs, others have not. Visit the healthcare.gov website to find out whether your state has expanded Medicaid.
Students have several options for obtaining health coverage in order to comply with the new healthcare law. A knowledgeable insurance agent can help you determine your best options for coverage, whether inside or outside the health insurance exchange. The deadline to apply for coverage, in order to avoid a penalty, is March 31, 2014.
Benefit Packages is a California-based agency and works with reputable carriers operating within the California health exchange, including Anthem Blue Cross of California. Call our agency today to apply for California health insurance at 1-800-356-3615.