How to Get Free or Low-Cost Health Insurance

Who Pays for Coverage?

Some employers subsidize their employees’ health insurance and health insurance coverage for employees’ families.

Other employers pay a portion of their employees’ health insurance premiums but do not subsidize premiums for family members.

If your parent has job-based health insurance and their employer subsidizes family premiums, then your health insurance premiums will be paid in part by your parent’s employer. The rest will be taken out of your parent’s paycheck.

If your parent’s employer does not subsidize family coverage, your entire monthly premium will be deducted from your parent’s paycheck.

If your parents buy their own health coverage, your premium will be added to theirs in order to get the new total monthly amount. Depending on the family's circumstances (and whether they purchase their coverage through the exchange/marketplace), they may qualify for a premium subsidy.

Assuming you're no longer a tax dependent, you'll each have to reconcile the premium subsidy on your own tax return, but you can choose to allocate your subsidy to your parents' return if they paid for your portion of the coverage during the year.

Recap

If you're under 26, you might be able to get covered by your parent's health insurance plan. They don't have to claim you as a dependent for you to be covered. You could even be living on your own or married and still be eligible for coverage through their plan.