A Complete Overview of Young Adult Health Insurance

Updated: September 27, 2022
young adult health insurance

You may be obliged to obtain your first Young Adult Health Insurance policy if you are an adult. There are, however, excellent options for those in their teens and twenties who want comprehensive coverage at a reasonable price. When looking for health insurance as a young adult, consider your own unique circumstances, such as your age, income, and stage of life.

A millennial starting their first career and living alone, for example, may need a different form of a health insurance policy than a single person starting their first job and living alone. As a result, it’s vital to assess your individual life before thoroughly reviewing regulations to determine the best decision.

Free Young Adult health insurance

We propose that you look into any free young adult health insurance coverage that you may be eligible for first. Either a corporate plan supplied by your employer or eligibility for the federally sponsored Medicaid program are examples.

Employer-provided health insurance

Obtaining coverage through an employer’s health plan that is fully paid for is one of the finest free or low-cost young adult health insurance choices. As healthcare prices rise and businesses demand employees to contribute a percentage of the premium, this practice is no longer as prevalent as it once was. On the other hand, employer-sponsored plans can still be a cost-effective option because most employers will cover the majority of your healthcare premiums.

Half of the premium is usually deducted from your paycheck before taxes if you choose employment coverage. Employer-sponsored health insurance will cover you and any dependents you have, similar to many other types of health insurance you should look into.


Enrolling in the government-sponsored Medicaid program is another free or low-cost health insurance alternative if you qualify. If your state has enacted legislation to expand its Medicaid program, you will be eligible for this program. Residents in states that have extended Medicaid are eligible if their family income is less than 138 percent of the federal poverty line. Young adults should enroll in Medicaid if they are unemployed or work for a company that does not give health insurance benefits.

Young Adult health insurance options

If you don’t have health insurance via your employer or your income is too high to qualify for Medicaid, you can still acquire comprehensive young adult health insurance through alternative sources, such as:

  • State-based health insurance exchanges
  • Alternative providers
  • Coverage for students through a school or college

Marketplace health insurance plans

If you are not qualified for Medicaid, you can get affordable young adult health insurance through your state’s Affordable Care Act (ACA) health insurance exchange. Normally, five distinct plan tiers are available on state exchanges: catastrophic, bronze, silver, gold, and platinum. Your income and overall health will determine the optimum plan tier for you.

If you’re single and looking for young adult health insurance, a lower-tier plan like Catastrophic or Bronze might be the best option. Most young adults or young couples who have not started a family and merely require minimal health insurance coverage can get advantages from these health insurance plans. Both of these health plans feature moderate premiums but a large deductible, making them perfect for people who predict few to no medical expenses. Furthermore, catastrophic health policies are only offered to people under the age of 30.

Silver health insurance policies include low premiums and deductibles, making them ideal for young couples who have recently begun a family. Because you may be facing additional medical expenses owing to a newborn or having a dependant, the lower deductibles would allow you to access coinsurance and copays more quickly. A Gold or Platinum coverage, with the lowest deductibles, could be an excellent alternative if you can afford higher rates.

Tax credits are used to lower the amount you would pay in health insurance premiums. A marketplace plan can be substantially cheaper than employer-sponsored health care in some situations if you qualify for this subsidy. This component of marketplace health insurance can be highly beneficial to cost-conscious young individuals with smaller earnings, as it tends to drop premiums to more affordable levels.

Catastrophic and Bronze plans are frequently the most affordable, and we recommend them for young adults in good health who do not have large medical bills. A Silver-tier coverage, as previously indicated, maybe a better alternative if you are starting a family because of the reduced deductible. Should you opt in for a long-term medical insurance read this to know more.

Health insurance purchased off-exchange

If your parents’ plan already covers you and your school’s state does not provide a comparable provider network, you may wish to consider this alternative. You can buy full-benefit policies in the private sector, just like you can in the ACA marketplace or commercial health insurance. The difference between both policies is whether you buy health insurance directly from the insurer or through an agency. Furthermore, off-exchange plans are not eligible for government-provided premium tax credits.

Health insurance for students

Purchasing young adult health insurance via your university is an affordable alternative for full-time students or recent college grads. When you initially arrive on campus, your college or school will usually give you a health insurance plan. If your parents’ plan already covers you and your school’s state does not provide a comparable provider network, you may wish to consider this alternative.

Let’s imagine you and your parents are from Michigan, but you want to pursue your education in Florida. You will be without health insurance while pursuing your degree if your parents’ health insurance does not cover you in Florida. You might purchase coverage from your school to save money on health insurance.

young adult health insurance

Continuing to be covered by a family health insurance plan

Under the age of 26, young individuals can continue on their parent’s health insurance plan. Suppose your parents already have health insurance or pay for an individual policy through their employment. In that case, this can be a fantastic young adult health insurance alternative because you won’t have to pay any premiums. If your parents want your assistance with payments for the family health insurance plan, the cost of adding you will be comparable to the cost of your own individual coverage.

Even if you are: You can join or stay on a parent’s plan.

  • Married
  • You don’t live with your parents
  • Going to school
  • Financial independence
  • Eligible for employer-sponsored health insurance

Until the age of 26, all states allow parents to keep their dependents on their health insurance plan. In New York, young individuals can remain on their parent’s insurance policy until they turn 29, but the parent must pay a high cost. If your parent agrees to add you to their plan, you will get free young adult health insurance. You can also know about the affordable health insurance in Florida if you are into it.

Young adult health insurance for short term

Short-term young adult health insurance, which can be purchased directly from a health insurance provider, is another off-exchange option to consider. These flimsy policies don’t offer the same coverage as strong ACA marketplace or private health insurance policies. On the other hand, short-term health insurance is a cost-effective and inexpensive option for young individuals with limited financial resources and low healthcare demands.

Short-term plans should not be selected if you require comprehensive health insurance that covers all key features. Additionally, if you have a previous medical condition, such as diabetes, you may be denied coverage throughout the application process.

Long term or short term here are the best health insurance companies list for you to get an idea.

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