No, not at all. You do not have to be a tax dependant of your parents to remain a dependent on their health plan. If you were once a dependent but now you're an independent person who doesn't need the help of your parents' income to meet your needs, then you can still stay on their policy.
Being a tax dependent means that if one of your parents died and they had not yet turned 65, your children would become eligible for government assistance. This could include Medicaid or Social Security benefits. If your parents had already turned 65 when this happened, your children would no longer be eligible for government aid. However, they could still keep their parent's health insurance coverage by declaring themselves as dependents again.
Tax dependants are considered necessary to provide protection against financial hardship if someone has a life-threatening illness or injury. The government requires employers to provide health insurance for these people.
Since most children under 18 don't need to worry about finances or independence, they usually rely on their parents to decide what kind of health care coverage they should have. But regardless of their age or situation, everyone in America is required by law to have medical insurance.
Health plans commonly cover spouses and children as dependents, but not parents. If you are unable to add your parents to your health insurance plan, you can enroll them in a separate health plan through the Marketplace or Medicare (if they are 65 or older).
The plan does not have to provide coverage for your spouse or children. It all boils down to whether your parents have a plan that includes dependent coverage. Most group health plans include this, so you may continue to use them even if you are qualified to enroll in one of your own. If your parents have their own plan, then they can decide what role it plays in providing coverage for you and your family.
You should check with your parent's carrier to make sure. But according to the Department of Health and Human Services, the answer is usually yes.
Even if you are married or living together, if your parents have their own plan, you will not be able to get coverage through an employer-sponsored plan. So you would need to find other coverage.
If your parents do not have a plan that includes dependent coverage, then you would be required to purchase separate policy. This means that you would need to find another source of coverage - perhaps from your own employment - for yourself and any other family members who might want coverage too.
If you are already 26 years old, then you are likely covered under your parents' plan until you turn age 25. After that, you would need to find other coverage unless you can afford to buy insurance on your own. The good news is that most young people can get discounted rates, so it is likely worth looking into.
Your child will not be obliged to be covered as a dependant under your parent's plan, regardless of the source. You will be in charge of acquiring coverage for your child. Depending on your income, your kid may be eligible for Medicaid/CHIP coverage in your state. Otherwise, they would have to get their own policy.
If you are concerned about whether or not your child is covered, ask them directly. If they say they are covered by someone else, then there is nothing to worry about.
You can remain on your parents' health insurance as a child dependant until you are 21 or, in certain situations, until you become 25, as long as you are not married or in a de facto relationship. If you are already 24 when you come off of your parents' policy, then you cannot be forced to leave unless one of the following situations applies to you:
You are in full-time education and have been for at least six months
You are employed in a qualified job for more than 50 hours per week (this is called "voluntary leave" and can be taken by writing a letter to this effect)
You suffer from a severe mental illness that has been diagnosed by a doctor and is expected to last for at least two years.
You have been declared an orphan and are living with neither parent or another family member.
You have been abandoned by both parents.
You have been separated from both parents for more than half of the time since you were born.
You are serving a sentence of one year or more in jail or prison.
You have ever been committed to a psychiatric hospital for more than 60 days.
Most notably, the tax deduction is not affected by whether the individual's parents or children are financially reliant on him or her. The amount of the tax advantage, however, is determined by the age of the individual who has the medical insurance policy. For example, those under 26 years old can generally only deduct $10,000 in coverage per year; individuals over 65 can generally be covered for up to $14,000 annually.
Furthermore, if the insured person was born before 1995, he or she can also claim a $100 million death benefit for each surviving spouse or domestic partner. This amount is increased to $200 million if the deceased person had cancer before 1995.
Finally, if the deceased person had been receiving Social Security disability benefits, they will be continued for up to two years after his or her death. After that time, any remaining balance will be paid out as a death benefit.
In conclusion, individuals who have medical insurance should consider the following when choosing a health plan: type of coverage (e.g., HMO, PPO), extent of coverage (e.g., need for dental and vision care), cost of coverage (particularly important for low-income individuals).
Those who qualify for Medicare but have not yet enrolled may want to think about purchasing supplemental insurance just in case.
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