July Q&A with iCan Counsel Michael Bertrand, Esq.

My son is turning 27 in 2 months and needs to get his own health insurance. Can you please help me tell him what to do?" Kathy M. - St. Louis, MO

Kathy, under the Affordable Care Act, children can now stay on their parent's policy up to the age of 26, which has been a welcome reform for many. But, since your son will soon be 27, there are several coverage options that are worth exploring. And, while a licensed insurance agent can help you understand these options so you don't have to do all the homework yourself, let me advise you a bit as well.

To begin, your son may be eligible for a subsidy to help him afford comprehensive major medical insurance. For individuals just starting their working careers, with low to moderate income, these subsidies could potentially provide hundreds of dollars per month to help make monthly premiums more affordable. Normally, comprehensive insurance like this is only available during the annual open enrollment period that begins in the fall. However, as your son is losing the minimum essential coverage he had under your plan, he should be eligible for a special enrollment which would allow him to get a subsidized policy even outside the open enrollment period.

Another option is Medicaid, which is a national health insurance program for those with low incomes. If your son is not working full time, perhaps his income is low enough to qualify for this type of coverage. You can contact your state's Medicaid office to help determine his eligibility.

There are also other insurance options for your son that could help him control and manage his out-of-pocket medical expenses, such as enrolling in a short-term medical policy, or a fixed benefit policy. While these types of coverage do not provide minimum essential coverage and may make him liable for a modest tax penalty, they are a popular option for younger consumers. If your son is in good health and you don't foresee any major medical expenses in the near future, these affordable insurance options are worth investigating.

If your son is in college, his school may have student health insurance coverage that he could purchase. Not all schools offer such coverage, but it is worth a call to the school Administrator to find out.

Again, the wisest course of action is to contact a licensed insurance agent so you can quickly learn about the coverage options available to your son. Best of luck and happy birthday to him in the meanwhile!

Michael Bertrand is the Government and Industry Relations Director for the iCan Benefit Group. An attorney by trade, Michael spent several years as an insurance regulator and served as Vermont's Commissioner of Banking, Insurance and Health Care Administration from 2010-2011, wherein he regulated the insurance industry in the state of Vermont and its fourteen (14) hospitals. The information or opinions contained herein are for informational purposes only as a service to the public, and is not legal or tax advice, or a substitute for legal or tax counsel.