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Understanding Loss of Dependent Coverage and Your Next Steps

Summary: This article explains how the loss of dependent coverage triggers a qualifying life event and outlines the next-step options available, including COBRA and marketplace enrollment.

Loss of Dependent Coverage as a Qualifying Life Event

When a dependent loses coverage, such as when they turn 26 and age out of a parent's health plan, this situation is recognized as a qualifying life event (QLE). This means that the individual is eligible for special enrollment opportunities.

Coverage End Date

Coverage for a dependent typically ends on the last day of the month following their 26th birthday. For example, if a dependent turns 26 on January 10, their coverage would end on January 31 of that year.

Next-Step Options

  1. COBRA Enrollment:

    • The individual may be eligible for COBRA continuation coverage, which allows them to maintain their health insurance for a limited time after losing coverage.
    • It is important to review the specific COBRA options available through the employer's health plan.

  2. Marketplace Enrollment:

    • The loss of coverage also opens a special enrollment period for the individual to enroll in a health plan through the health insurance marketplace.
    • They should notify their employer of the qualifying life event to facilitate enrollment in a new plan.

Conclusion

The loss of dependent coverage is a significant event that allows for new health insurance options. Individuals should take action promptly to explore COBRA and marketplace enrollment to ensure they maintain health coverage without interruption.