As college kids return to university after the holidays, it's a good time to sit down and review his or her medical coverage. Under the Affordable Care Act (ACA), also referred to as Obamacare, everyone,--including students-- must have health coverage or pay a fine.
In 2012, the ACA required employer-sponsored medical plans to cover dependents until age 26. That was good news for parents with young adults in college. However it can be the wrong plan if your student is attending a university in another state. For example, if the parents are enrolled in an HMO, with no out-of-network coverage, your young adult may only be covered for a true emergency.
What if your adult child works, and is offered health coverage at his or her employer? That gets more tricky. Low-wage employers such as retail or fast food chains may offer coverage, but the coverage is inadequate, with high deductibles and copays. Unfortunately, the answer is that the student must enroll in health coverage if offered by his own employer,
See video for more infornation about this topic.