Employer Coverage

As a result of ACA, you can keep your student(s) on your employer plan until age 26 as a dependent. This is likely to be an easy solution, but there are some issues you should consider:

Trend toward higher deductibles: To offset the increased benefits required by ACA, many employer plans are increasing the individual and family deductible. Large deductibles can make it difficult for your student to access healthcare.

Geographically restricted managed care plans: If your student is attending college out of state, the care they receive while at school may be considered out of network and cost significantly more out of pocket.

Dependent premiums increasing/employer contributions decreasing: As reported by JD Powers in 2012, employers have begun to pass along rate increases to their employees by decreasing their contribution to the employer health plan and increasing the employees’ dependent premiums.