Shuman Roy is an entrepreneur, business owner, and musician. He started RoysNoys, LLC in 2013 as a music production and education service company. He also offers small business consulting and advisory services to help businesses get from start-up mode to turn-key operations. Shuman earned his M.B.A from the Stern School of Business in 2001 and has an undergraduate degree from Manhattan College in ...

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Joel Ohman is the CEO of a private equity-backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Joel...

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Reviewed by Joel Ohman
Founder, CFP®

UPDATED: Feb 1, 2021

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The White House issued regulations this week that will allow young adults to stay on their parent’s employer-sponsored health insurance plans until the age of 26.

The change, which is part of the wider Affordable Care Act (health reform), is intended to assist young individuals who aren’t able to obtain health insurance on their own.

Roughly 30% of young adults are uninsured, three times higher than the uninsured rate among children, and the highest of any other age group.

Additionally, the uninsured rate among employed young adults is one-third higher than older employed adults.

This is the result of young adults having a low rate of access to employer-based health insurance, partially because they take entry-level jobs, part-time jobs, or jobs in small businesses that don’t offer insurance plans.

The current economic turmoil is also likely to take its toll on young adults, as many recent graduates will probably find difficulty finding a job and subsequent health insurance coverage.

The provision was scheduled to go into effect in September, but upon the Administration’s urging, every major insurance company has pledged to provide continuous coverage for young adults throughout the summer.

An analysis found that the cost of adding this provision will only raise family health insurance premiums by 0.7% while allowing 1.2 million young adults to gain coverage under their parent’s health insurance plans or via the individual market.

Young adults typically lose access to their parent’s health care policy at age 19, or age 23 if full-time students.

Be sure to contact your independent insurance agent or health care provider for details.

Read more: Can I get health insurance without a job?

(photo: moe)