College Credits to stay on Parents Health Insurance

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snowox
Posts: 273
Joined: Wed Nov 08, 2017 9:17 am

College Credits to stay on Parents Health Insurance

Post by snowox » Sun Jun 09, 2019 6:52 am

I am curious if anyone knows how many credits a person needs to remain on Health Insurance.

To be more detailed my Son is 20 and will be starting his Junior year. He transferred schools and has landed a pretty good job but we both agree his priority should be to finish school at a pace he can handle and the company that he is working being smaller will work around his schedule but doesnt have tuition reimbursement. So I am looking to see if anyone knows how many credits he needs to take to stay on our insurance and also if a certain per semester or is it by the year.

Thanks

Silk McCue
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Joined: Thu Feb 25, 2016 7:11 pm

Re: College Credits to stay on Parents Health Insurance

Post by Silk McCue » Sun Jun 09, 2019 6:59 am

A Google search found multiple articles on this topic. It appears that things are more flexible these days but can also be insurance company specific to some extent. Age and where they live seems to matter most.

https://usinsuranceagents.com/answers/3 ... -insurance

Cheers

HomeStretch
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Re: College Credits to stay on Parents Health Insurance

Post by HomeStretch » Sun Jun 09, 2019 7:06 am

Even without college credits, doesn’t current law allow children (even if eligible for employer coverage) to remain on parents’ family insurance coverage until they turn 26?

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beyou
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Location: Northeastern US

Re: College Credits to stay on Parents Health Insurance

Post by beyou » Sun Jun 09, 2019 7:08 am

You need to look at laws in your state and contact your plan. My plan allows children to 26 without regard to student status. YMMV.

Spirit Rider
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Re: College Credits to stay on Parents Health Insurance

Post by Spirit Rider » Sun Jun 09, 2019 7:09 am

The ACA removed any college requirement for a child to remain on a parents health Insurance until age 26. Any child can remain, they do not have to be a dependent or even live with the parent(s).

In fact, if the parents have a family HDHP, a non-dependent child can make their own HSA contributions up to the full family plan contribution limit.

Topic Author
snowox
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Re: College Credits to stay on Parents Health Insurance

Post by snowox » Sun Jun 09, 2019 7:32 am

Wow, Thanks everyone for the answers. I was googling as well and I dont see anywhere it being state specific which to me would make the most sense being a federal program/law by ACA

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beyou
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Location: Northeastern US

Re: College Credits to stay on Parents Health Insurance

Post by beyou » Sun Jun 09, 2019 10:17 am

Not all states have to follow ACA. If they don't get a subsidy from the federal gov, why do they have to follow the federal law ?
So an ACA compliant policy would allow this, but you can buy plans outside ACA that are not subject to the same rules, in some states.

Topic Author
snowox
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Re: College Credits to stay on Parents Health Insurance

Post by snowox » Tue Jun 11, 2019 4:59 am

Im just going to call are provider to make sure. Thanks. Were in Wisconsin if anyone is from there and already knows,

Spirit Rider
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Re: College Credits to stay on Parents Health Insurance

Post by Spirit Rider » Tue Jun 11, 2019 7:26 am

Before the ACA, some states provided under 26 coverage on their own, but @beyou is not correct now. The ACA is superceding federal law in all states regarding coverage regardless if it is a Marketplace policy.

This is just like individual health insurance benefits. Before the ACA, some states mandated specific additional benefits that were not mandated by federal law. The ACA defined "minimal essential benefits" for all newly issued policies, regardless if it is a Marketplace policy

bryansmile
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Re: College Credits to stay on Parents Health Insurance

Post by bryansmile » Tue Jun 11, 2019 7:52 am

Spirit Rider wrote:
Sun Jun 09, 2019 7:09 am
In fact, if the parents have a family HDHP, a non-dependent child can make their own HSA contributions up to the full family plan contribution limit.
Can you explain this a bit more? If my non dependent child is on my family plan and I max out the HSA to 7k, can my child contribute extra?

Spirit Rider
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Re: College Credits to stay on Parents Health Insurance

Post by Spirit Rider » Tue Jun 11, 2019 8:17 am

bryansmile wrote:
Tue Jun 11, 2019 7:52 am
Spirit Rider wrote:
Sun Jun 09, 2019 7:09 am
In fact, if the parents have a family HDHP, a non-dependent child can make their own HSA contributions up to the full family plan contribution limit.
Can you explain this a bit more? If my non dependent child is on my family plan and I max out the HSA to 7k, can my child contribute extra?
Yes, to be an HSA eligible individual, you can not be a dependent, must be covered under an HDHP and have no "other coverage". Also, since the "rules for married people" do not apply, their contribution is not limited by their parent's contributions.

A non-dependent child covered by a parent's HDHP with no other coverage can open an HSA and the full family plan maximum contribution limit can be made by them and/or third parties (you).

bryansmile
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Re: College Credits to stay on Parents Health Insurance

Post by bryansmile » Tue Jun 11, 2019 8:30 am

Spirit Rider wrote:
Tue Jun 11, 2019 8:17 am

Yes, to be an HSA eligible individual, you can not be a dependent, must be covered under an HDHP and have no "other coverage". Also, since the "rules for married people" do not apply, their contribution is not limited by their parent's contributions.

A non-dependent child covered by a parent's HDHP with no other coverage can open an HSA and the full family plan maximum contribution limit can be made by them and/or third parties (you).
Awesome! It'll come in handy when my child graduates from college. And my non-dependent child can contribute up to 7k just because he's on my family plan, even though he's single, correct?

erictiger
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Re: College Credits to stay on Parents Health Insurance

Post by erictiger » Tue Jun 11, 2019 9:58 am

Thanks for this information. I also just realized I can not use my HSA money to pay her medical expenses even though my child is on my Insurance plan.

Where is the best place for my child to open her HSA?

Lake Living
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Re: College Credits to stay on Parents Health Insurance

Post by Lake Living » Tue Jun 11, 2019 10:13 am

erictiger wrote:
Tue Jun 11, 2019 9:58 am
Thanks for this information. I also just realized I can not use my HSA money to pay her medical expenses even though my child is on my Insurance plan.

In Publication 969, the IRS clarifies that you can withdraw tax-free money from your HSA to pay for qualified medical expenses for:

Any dependents you claim on your tax return (your children, or a qualifying relative dependent) and any children who are claimed on your ex-spouse's tax return
Anyone you could have claimed as a dependent, but weren't able to because he or she:
filed a joint tax return (for example, your married teenage kid who files a joint return with his or her spouse)
earned more than $4,150 (in 2018), or you (or your spouse, if you file jointly) could be claimed as a dependent on someone else's tax return.

radeon962
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Re: College Credits to stay on Parents Health Insurance

Post by radeon962 » Tue Jun 11, 2019 12:01 pm

Check with your employer. Mine allows children to stay on until the end of the month in which they turn 26.

Student or not does not matter.

Spirit Rider
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Re: College Credits to stay on Parents Health Insurance

Post by Spirit Rider » Tue Jun 11, 2019 12:32 pm

bryansmile wrote:
Tue Jun 11, 2019 8:30 am
Awesome! It'll come in handy when my child graduates from college. And my non-dependent child can contribute up to 7k just because he's on my family plan, even though he's single, correct?
Correct, as long as they do not have other coverage.

MathWizard
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Re: College Credits to stay on Parents Health Insurance

Post by MathWizard » Tue Jun 11, 2019 2:50 pm

Spirit Rider wrote:
Tue Jun 11, 2019 7:26 am
Before the ACA, some states provided under 26 coverage on their own, but @beyou is not correct now. The ACA is superceding federal law in all states regarding coverage regardless if it is a Marketplace policy.

This is just like individual health insurance benefits. Before the ACA, some states mandated specific additional benefits that were not mandated by federal law. The ACA defined "minimal essential benefits" for all newly issued policies, regardless if it is a Marketplace policy
From the ACA text at

Code: Select all

https://www.govinfo.gov/content/pkg/PLAW-111publ148/pdf/PLAW-111publ148.pdf

‘‘SEC. 2714. EXTENSION OF DEPENDENT COVERAGE.
‘‘(a) IN GENERAL.—A group health plan and a health insurance
issuer offering group or individual health insurance coverage that
provides dependent coverage of children shall continue to make
such coverage available for an adult child (who is not married)
until the child turns 26 years of age. Nothing in this section shall
require a health plan or a health insurance issuer described in
the preceding sentence to make coverage available for a child of
a child receiving dependent coverage.
‘‘(b) REGULATIONS.—The Secretary shall promulgate regulations
to define the dependents to which coverage shall be made available
under subsection (a).
‘‘(c) RULE OF CONSTRUCTION.—Nothing in this section shall
be construed to modify the definition of ‘dependent’ as used in
the Internal Revenue Code of 1986
I haven't seen any new legislation that changed this.

Spirit Rider
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Joined: Fri Mar 02, 2007 2:39 pm

Re: College Credits to stay on Parents Health Insurance

Post by Spirit Rider » Tue Jun 11, 2019 4:23 pm

MathWizard wrote:
Tue Jun 11, 2019 2:50 pm
Spirit Rider wrote:
Tue Jun 11, 2019 7:26 am
Before the ACA, some states provided under 26 coverage on their own, but @beyou is not correct now. The ACA is superceding federal law in all states regarding coverage regardless if it is a Marketplace policy.

This is just like individual health insurance benefits. Before the ACA, some states mandated specific additional benefits that were not mandated by federal law. The ACA defined "minimal essential benefits" for all newly issued policies, regardless if it is a Marketplace policy
From the ACA text at

Code: Select all

https://www.govinfo.gov/content/pkg/PLAW-111publ148/pdf/PLAW-111publ148.pdf

‘‘SEC. 2714. EXTENSION OF DEPENDENT COVERAGE.
‘‘(a) IN GENERAL.—A group health plan and a health insurance
issuer offering group or individual health insurance coverage that
provides dependent coverage of children shall continue to make
such coverage available for an adult child (who is not married)
until the child turns 26 years of age. Nothing in this section shall
require a health plan or a health insurance issuer described in
the preceding sentence to make coverage available for a child of
a child receiving dependent coverage.
‘‘(b) REGULATIONS.—The Secretary shall promulgate regulations
to define the dependents to which coverage shall be made available
under subsection (a).
‘‘(c) RULE OF CONSTRUCTION.—Nothing in this section shall
be construed to modify the definition of ‘dependent’ as used in
the Internal Revenue Code of 1986
I haven't seen any new legislation that changed this.
There was no need for any new legislation. This section is exactly what mandates health insurance coverage for an adult child < age 26 (regardless if they are a dependent), but that coverage does not make them a dependent for HSA purposes.

This dual status of ACA mandated child coverage, but no change in IRS tax dependency is precisely what allows a non-dependent adult covered under an HDHP to open and make HSA contributions to the maximum family contribution limit.

This section also allows two unmarried parents to cover the same child under an HDHP and both make HSA contributions to the maximum family contribution limit.

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