Navigating the Affordable Care Act (ACA) can seem complex, especially for college students who are often new to managing their own healthcare. Here’s what college students need to know about health insurance under the ACA:
1. **Coverage Under Parents’ Plans**: Under the ACA, young adults can stay on their parents’ health insurance plans until they turn 26, regardless of their student status, marital status, financial dependence, residency, or eligibility for employer-sponsored coverage. This option provides a convenient and often cost-effective way for college students to maintain health insurance coverage.
2. **Individual Mandate**: The ACA included an individual mandate, which required most Americans to have health insurance coverage or pay a penalty. While the individual mandate was effectively repealed in 2019, many states still have their own individual mandates in place. College students should be aware of their state’s regulations regarding health insurance coverage.
3. **Health Insurance Marketplace**: The ACA established Health Insurance Marketplaces where individuals and families can shop for and purchase health insurance plans. These marketplaces offer a range of options, including different levels of coverage and financial assistance for those who qualify based on income.
4. **Open Enrollment Periods**: The Health Insurance Marketplace has specific open enrollment periods during which individuals can sign up for health insurance coverage or make changes to their existing plans. Outside of open enrollment periods, students may qualify for a Special Enrollment Period if they experience certain life events, such as getting married, having a baby, or losing other health coverage.
5. **Financial Assistance**: Many college students qualify for financial assistance to help pay for health insurance coverage through the Health Insurance Marketplace. Subsidies are available to individuals and families with incomes between 100% and 400% of the federal poverty level. These subsidies can significantly reduce the cost of monthly premiums.
6. **Essential Health Benefits**: Health insurance plans offered through the Health Insurance Marketplace are required to cover essential health benefits, including preventive care, emergency services, prescription drugs, and mental health and substance abuse treatment. Understanding these benefits can help students choose a plan that meets their needs.
7. **Medicaid Expansion**: The ACA expanded Medicaid eligibility in many states, providing coverage to low-income individuals and families. College students with limited incomes may qualify for Medicaid coverage, depending on the eligibility criteria in their state.
8. **Exemptions and Hardship Waivers**: Some individuals may qualify for exemptions from the ACA’s individual mandate or hardship waivers if they experience financial difficulties or other extenuating circumstances that prevent them from obtaining health insurance coverage.
9. **Student Health Plans**: Some colleges and universities offer their own health insurance plans for students. While these plans can be convenient, students should carefully compare them to other options available through the Health Insurance Marketplace to ensure they provide adequate coverage at a competitive price.
10. **Seeking Assistance**: Navigating the ACA and selecting a health insurance plan can be overwhelming. College students can seek assistance from trained navigators, enrollment assisters, or insurance brokers who can help them understand their options, determine eligibility for financial assistance, and enroll in a plan that meets their needs and budget.
Understanding the basics of the Affordable Care Act and how it impacts health insurance coverage can empower college students to make informed decisions about their healthcare options. By exploring available resources and seeking assistance when needed, students can find the coverage that best suits their individual circumstances.
