As part of the 2010 health care reform law, people up to age 26 can now get covered by their parents’ health insurance policies.
Young adults are often without health insurance for various reasons. The economy can be blamed in many cases with the unemployment rate near 10%. Many had become ineligible under the old law due to age restrictions in their parents plan. Still others did not qualify because they were only part time or their employer simply did not offer health insurance.
Whatever the reason, twentysomething individuals account for the majority of uninsured Americans.
The new law took effect on September 23, 2010 for insurance plans that already covered dependents. It also applies to self-employed individuals who qualify for the self-employed health insurance deduction on their federal income tax return.
Generally, most children under 27 will qualify as long as they are not covered under another plan. Children who were previously dropped from dependent coverage will be able to re-enroll. Even a child who is married (but not the child’s spouse) may qualify under the parents insurance.
Parents with a child under 27 will need to check with their plan regarding qualifications and enrollment dates.
If you have any questions, please feel free to give us a call at 919-942-8700. You can also review this information at the IRS website at http://www.irs.gov/newsroom/article/0,,id=222193,00.html.
About Blackman & Sloop CPAs, P.A.:
Blackman & Sloop is a full-service CPA firm headquartered in Chapel Hill, North Carolina and is actively involved in auditing, taxation, management consulting, financial planning, and related services. The firm directs a large part of its services toward providing management with advice on budgeting, forecasts, projections, financing decisions, financial analysis, and tax developments. The firm also performs review and compilation services and prepares not-for-profit, corporate, individual, estate, retirement plan, and trust tax returns as well as technology consulting services regarding installation and training on QuickBooks. Blackman & Sloop provides services in Raleigh, Durham, Chapel Hill, RTP, Hillsborough, Pittsboro, Charlotte, and the rest of North Carolina. To find out more please visit http://www.blackmansloop.com
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