Anyone drop son or daughter to save on health $

[LiveBelowMeans]

Just wondering if anyone has considered dropping a 21 years old son or daughter from your health insurance to save on health insurance $. My thought is DD has little to no income and would qualify for virtually free health care as she is mainly a student. My health care should drop going from 3person family to 2 persons covered. I don't get any $$ subsidy and must pay full cost currently. I would still "help" daughter pay for health care via gifts. Does this work??

 

[pb4uski]

You should check it out both from your perspective and from hers. Do you provide more than half of her support? Claim her as a dependent?

https://www.healthcare.gov/young-adults/college-students/

 

[aja8888]

Just wondering if anyone has considered dropping a 21 years old son or daughter from your health insurance to save on health insurance $. My thought is DD has little to no income and would qualify for virtually free health care as she is mainly a student. My health care should drop going from 3person family to 2 persons covered. I don't get any $$ subsidy and must pay full cost currently. I would still "help" daughter pay for health care via gifts. Does this work??

Where would she get the free healthcare?

 

[mpeirce]

I'd say it depends on your current situation with your DD.

If a 21 yo is living independently, then surely they should pay for their own expenses.

If you are still supporting your DD (like having agreed to pay to send them to college or letting them live at home) then you should do whatever you agreed to such as paying for food, shelter, health care.

 

[exnavynuke]

Where would she get the free healthcare?

With little income as a college student she'd probably qualify for 100% of an ACA policy premiums to be covered by subsidies. I think that's what OP is referring to as "Free" (hence the "gift her money" to help her pay for anything out of pocket)

 

[LiveBelowMeans]

I get no benefit claiming DD as a dependent due to phase out.

 

[LiveBelowMeans]

yes exnavy,
my thoughts exactly

 

[youbet]

LBM -

No, never did that myself.

In your case, there is absolutely no way for you to make the decision unless you determine exactly what coverage she could obtain and at what cost. Then, and only then, can you do a cost/benefit analysis and make a decision. Go find the specific coverage she would have and the cost. Compare that side by side with the situation she has while tagging along on your coverage. Your answer will appear.

Until you go get the specific information, we're just chit-chatting about a hypothetical situation.

 

[SecondCor521]

With little income as a college student she'd probably qualify for 100% of an ACA policy premiums to be covered by subsidies. I think that's what OP is referring to as "Free" (hence the "gift her money" to help her pay for anything out of pocket)

She would only qualify for ACA subsidies if (among other criteria) she made more than 100% of FPL if she lives in a state which did not expand Medicaid, or more than 133% or 138% of FPL if she lives in a state which did expand Medicaid. FPL is $11,880 for ACA coverage next year.

In other words, if she is a typical poor college student, she might make too little to qualify for ACA subsidies.

If she makes under 100% of FPL, she may qualify for health insurance or health care for "poor" people, like Medicaid.

 

[aja8888]

She would only qualify for ACA subsidies if (among other criteria) she made more than 100% of FPL if she lives in a state which did not expand Medicaid, or more than 133% or 138% of FPL if she lives in a state which did expand Medicaid. FPL is $11,880 for ACA coverage next year.

In other words, if she is a typical poor college student, she might make too little to qualify for ACA subsidies.

If she makes under 100% of FPL, she may qualify for health insurance or health care for "poor" people, like Medicaid.

^^^^^ This. You need a minimum amount of income to qualify for ACA coverage. She may be able to get on with Medicaid though.

 

[ziggy29]

I think one also needs to look at the quality of care she can expect to receive and the size of the network she would be in.

 

[Just_Steve]

Quite the contrary, I do everything in my power to keep my children 24 & 19 on my medical, dental and vision insurance.

 

[sengsational]

The university offers insurance for students that is better than if I kept my daughter on my ACA policy. Basically it's a "group" of students that all have access to the on-campus health clinic, but would go the the university hospital for the more serious stuff. The price for the policy seems reasonable to me ($90/mo). And they have it set-up so that students returning the next fall are covered continually, even though they might not be in a summer program. So the answer is 'yes', I 'dropped' her from my policy, but still end-up paying for her, since she's not independent yet.

 

[KCGeezer]

Dropped DD from my retiree coverage and bought her a non subsidized individual policy last year. I saved a bit on monthly premium by accepting more risk if there's a significant issue. This next year there's only one policy I can find that will provide adequate coverage for her both here and at school (and then wherever she goes after spring graduation).

Biggest question is how long the bank of mom & dad will provide reinsurance, whether that's monthly premium or catastrophic costs. Right now, it's more important to us that we can sleep at night so better networks, manageable risk, and flexibility win out over lowest cost.

 

[Katsmeow]

If you are on a retiree policy, you have to consider if you could add her back on later if she had no insurance coverage. If you can't then that could be a potential future problem.

Also, bear in mind, that the ACA may not exist in the very near future. Which means your daughter either might not be able to obtain insurance or it might be far more expensive.

 

[KCGeezer]

You're correct katsmeow, already researched prior to moving her to her own policy. Dependents are not allowed back on the retiree coverage once removed. That is definitely another consideration for OP if applicable.

 

[EastWest Gal]

Our son turns 25 this year and will get his own ACA plan this year. We're going non-ACA since we won't qualify for a subsidy and the ACA plans are awful and expensive. He's now working but missed open enrollment. Started work end of August, open enrollment ended Sept 2 (teacher). We haven't decided on dental yet.

 

[Texas Proud]

I am assuming you are not getting any credit back....

But, if you are, then it might not make sense...

I was helping out one of DWs friends sign up.... we thought her daughter would qualify for CHIP... so we looked at plans for the friend... got a net number.... then decided to take a look if we put her daughter on also... the net cost dropped!!!

Yes, with a credit it was cheaper to have two people insured than one...

 

[pb4uski]

OP said it was a no subsidy situation.

 

[NW-Bound]

I was curious, so add a hypothetical 21-year old son to see the additional premium. It would be a bit more than $200/month for me.

Pre-ACA, it was not that much. In fact, when I dropped my daughter when she had her real job, then my younger son later when he flew the coop, I remember being disappointed that the premium did not go down as much as I expected. It was $80 or something for each of them.

 

[donheff]

So you drop your daughter and she doesn't get insurance for whatever reason is then diagnosed with a serious chronic illness that demands lots of medical attention (not just emergency room visits). Do you help out or let your child sink on her own? My brother ran into this situation pre-ACA when his son graduated college losing coverage and was almost immediately diagnosed with cancer. They were able to beat the system and get their son covered by another school plan but would have exhausted their savings if they had not been able to do that.

 

[travelover]

So you drop your daughter and she doesn't get insurance for whatever reason is then diagnosed with a serious chronic illness that demands lots of medical attention (not just emergency room visits). Do you help out or let your child sink on her own? My brother ran into this situation pre-ACA when his son graduated college losing coverage and was almost immediately diagnosed with cancer. They were able to beat the system and get their son covered by another school plan but would have exhausted their savings if they had not been able to do that.

Of course, this is true whether your child is 21 or 40. At what age do they take responsibility for themselves?

 

[pb4uski]

That is why I insist that both of our children have health insurance... it is as much protection to me as it is for them... I actually would probably pay for it if they didn't, but don't tell them that.

 

[NW-Bound]

Of course, this is true whether you child is 21 or 40. At what age do they take responsibility for themselves?

I carried my young adult children while they were in college, and did not have a regular job. Actually, I continued to help them while they looked for work.

After that, if they found themselves in financial hardship, they would have to apply to the state for assistance.

 

[donheff]

Of course, this is true whether you child is 21 or 40. At what age do they take responsibility for themselves?

Doesn't matter. The question remains what would you do because it is your nest egg at risk. If your answer is help it is in your interest to make sure they are insured. If you are prepared to let your 40 yo barrista face the consequences don't worry about it.