Health Insurance Options for Young Adults

Why Young Adults Need Health Insurance

"I'm young and healthy, do I really need health insurance?" The answer is yes, for several reasons:

Financial Protection

• Accidents happen: A broken bone from sports can cost $10,000+ without insurance
• Emergency room visits: One ER visit can cost $2,000-$20,000
• Unexpected illnesses: Appendicitis surgery costs $20,000-$35,000 without insurance

California Individual Mandate

California requires residents to have health insurance or pay a tax penalty when filing state taxes:

• 2.5% of household income OR
• $900+ per adult (whichever is greater)

With subsidies, insurance often costs less than the penalty.

Preventive Care

All Covered California plans include free preventive care:

• Annual wellness exams
• Vaccinations and immunizations
• STD testing and birth control (at no cost)
• Mental health screenings

Turning 26: Aging Off Parent's Plan

Under the ACA, you can stay on your parent's health plan until age 26. But when you turn 26, you must get your own coverage:

When Coverage Ends

• Coverage ends on your 26th birthday (or end of the month in some cases)
• You cannot stay on parent plan past age 26, even if you're a student
• Losing coverage triggers a Special Enrollment Period

How to Transition

1. 60 days before turning 26: Start researching Covered California plans
2. Request termination letter: Get proof from parent's insurance showing coverage end date
3. Enroll within 60 days: Apply for Covered California coverage
4. No gap: Request coverage to start the day after parent coverage ends

Low-Cost Health Plan Options

1. Bronze Plans (Best for Healthy Young Adults)

Bronze plans have the lowest premiums and are ideal if you're healthy and rarely see doctors:

• Lowest monthly premium: $150-$300/month (before subsidies)
• Higher deductible: $6,000-$7,500
• Good for: Emergency coverage and preventive care
• With subsidies: Often $0-$50/month

2. Bronze HDHP with HSA

High-Deductible Health Plans qualify you for a Health Savings Account (HSA):

• Contribute pre-tax money to HSA (up to $4,150/year)
• Use HSA funds for medical expenses tax-free
• HSA rolls over year to year (like a 401k for healthcare)
• Great way to save for future healthcare costs

3. Catastrophic Plans (Under 30 Only)

If you're under 30 or have a hardship exemption, you can enroll in catastrophic plans:

• Lowest premiums available
• Very high deductible ($9,200+ in 2026)
• Covers 3 primary care visits before deductible
• All preventive care free
• Emergency-only coverage essentially

Note: Catastrophic plans don't qualify for subsidies.

4. Silver Plans (If You Need More Coverage)

If you have ongoing medical needs or take prescriptions regularly:

• Moderate premiums ($200-$400/month before subsidies)
• Lower deductibles ($2,500-$4,500)
• More predictable out-of-pocket costs
• Qualify for Cost-Sharing Reductions if income is below 250% FPL

What Young Adults Pay in 2026

Here are real premium examples for young adults in California before subsidies:

With Subsidies (Real Examples)

25-year-old earning $35,000/year (233% FPL):

• Bronze plan: $25/month (instead of $300)
• Silver plan: $75/month (instead of $425)

21-year-old earning $25,000/year (166% FPL):

• Bronze plan: $0/month
• Silver plan: $1/month