Health Insurance and Your College Student: What Parents Should Know

Health Insurance and Your College Student: What Parents Should Know

As graduation season nears, many parents find themselves asking important questions about health insurance coverage for their college-age children. Whether your child is entering college, studying out of state, or graduating and transitioning into the workforce, understanding your coverage options can help avoid costly gaps in care.

Covered Until Age 26

Under the Affordable Care Act, children can remain on their parent’s health insurance plan until they turn 26, regardless of whether they’re in school, living at home, financially dependent, or married. This makes it easy to maintain continuity of coverage while a student is navigating early adulthood. However, keep in mind that using your plan’s network may be challenging if your child is attending school in a different state or city.

Student Health Plans

Most colleges and universities offer student health insurance plans. These are typically designed to be affordable and provide access to care near campus. They often include basic services like preventive care, mental health visits, and prescriptions. While these plans may have smaller networks and limited coverage during school breaks, they can be a great supplement or alternative if the parent’s network doesn’t cover out-of-state providers.

After Graduation: Marketplace vs. COBRA

Once your child graduates, health coverage may need to be reevaluated. If they had student insurance or were covered through your employer, losing that coverage could trigger a Special Enrollment Period for Marketplace plans. Depending on income, recent graduates may qualify for subsidies that make these plans affordable.

COBRA is another option, allowing recent grads to temporarily continue coverage from a parent’s employer-sponsored plan. However, COBRA tends to be more expensive since it requires paying the full premium plus a small administrative fee. For those who need short-term coverage or have ongoing health needs, Marketplace plans are often the more cost-effective solution.

Moving to a New State or City If your child is relocating—either for school, a job, or an internship—they may need to switch plans or networks. A move to a new ZIP code or state qualifies as a life event, allowing for adjustments in coverage through the Marketplace. Make sure the new plan offers access to local providers and includes the coverage they need.

Got a child turning 26 or heading to college? Let’s review your options together and ensure they’re protected every step of the way.