Under federal law, you get kicked off your parents’ insurance with Blue Cross Blue Shield when you turn 26. That rule applies to Blue Cross Blue Shield plans the same way it applies to any other insurer, because it comes from federal law rather than the carrier.1GovInfo. 42 U.S.C. § 300gg–14 The rule covers both individual marketplace policies and employer-sponsored group plans.
What Cannot End Your Coverage Before 26
A lot of the reasons young adults worry about losing coverage are not actually allowed to end it. Before age 26, a plan cannot deny or restrict your eligibility based on whether you are married, a student, financially independent, employed, or living with your parents.2Internal Revenue Service. IRS Bulletin No. 2015-49
Where you live is treated the same way. Federal regulations prevent insurers from ending a child’s eligibility just because they live or work outside the plan’s service area, and that holds true even for HMO networks. Moving away may change which local doctors are in-network, but it cannot be used as a reason to terminate coverage for anyone under 26.2Internal Revenue Service. IRS Bulletin No. 2015-49
When Coverage Can End Sooner
Your coverage as a dependent depends on your parent still having the plan. If your parent leaves their job, if the employer stops offering health benefits, or if your parent switches to a plan that does not include dependent coverage, your coverage ends with theirs. In those situations, you may be eligible for a temporary extension through COBRA continuation coverage.
How the Plan Type Can Change the Details
Blue Cross Blue Shield is made up of many independent companies, and the rules for a particular policy can depend on how the plan is funded. Many large employers self-fund their insurance and follow federal law under ERISA rather than state mandates, which can produce differences from a plan bought directly on the individual market.3GovInfo. 29 U.S.C. § 1144 The age-26 floor still applies, but specific benefits and procedures around the transition can vary.
Your Options After You Age Out
Turning 26 is a qualifying event, so you do not have to wait for open enrollment to find new coverage. If your parent’s plan came through an employer with 20 or more employees, you may qualify for COBRA. Aging out of dependent status is one of the events that lets you keep the same plan for up to 36 months, though you generally pay the full premium plus a small administrative fee.4GovInfo. 29 U.S.C. Chapter 18
You can also enroll in a plan through the health insurance marketplace. Depending on your household income, you may qualify for the Premium Tax Credit, which lowers the monthly premium.5Internal Revenue Service. IRS – Premium Tax Credit Overview Between COBRA and a marketplace plan, most people aging off a parent’s Blue Cross Blue Shield policy have a way to keep continuous coverage if they act around their 26th birthday rather than after it.