There are a few things you must know about adding parents to your health insurance plan. Obviously, you don’t want to leave mom and dad without coverage. The good news is that there are many routes to explore regarding coverage options.
Let’s dive into adding your parents you’re your health plan as there is a lot to talk about. Our goal at Cuspide is to provide affordable health coverage for everyone.
Key Takeaways
- You can add your parents to your health insurance, only if you claim them as a dependent.
- Consult with an insurance agent/broker to help you with your case.
- Usually, you will not be able to add parents to your health insurance policy.
Can I add my parents to my health insurance?
Yes, you add your parents to your health insurance plan but only if you are going to be claiming them as a dependent on your tax returns. Obamacare insurance (ACA) is based on your household. Your “household” refers to the main tax filer, their spouse, and dependents. For example, a husband and a wife with 2 kids can add grandma to the health insurance plan by claiming grandma as a dependent in the tax returns. That is the only way. Adding your parent can also change your plan (more on this later.)
On the other hand, if your parents are making an income and will file taxes on their own, they will have to be in their own separate health insurance plan. Adding your parents only works if you claim them as dependent. Also, they must be a citizen or resident of the United States. It’s important to figure out why you want to add them. Maybe they were denied Medicaid or didn’t meet the requirements for Medicare. Let’s go a bit deeper into that.
When should you add your parents to your health insurance plan?
There are many different reasons why people add their parents to their plan. Maybe they can’t get Medicare. Maybe their own plan is too costly, and you want to help them out. Let’s go into the times where it may be best to add mom and dad to your Obamacare plan. Keep in mind that all these scenarios will only work if you claim them as a dependent.
A big reason why people add their parents to their policy is because of Medicare/Medicaid denial. Maybe the income is a bit too high and since Medicaid is for low-income individuals and families, they were denied. Or if they went to apply for Medicare, they were simply too young as the minimum age is 65 years old. Whatever the reason is, it is important that they do not stay without coverage so adding them might be the best option.
Another common scenario is that your parents are foreign, and they just moved to the United States. Usually, they will not have a job right away, so the best choice is to add them to your policy. They will need a social security number and some sort of verification (like a green card, employment authorization, etc) if they want health insurance. If you are still above the 100% FPL once you add them, they can still get coverage. (More on this later.)
If your parents lost their health insurance coverage that is a solid reason to add them to your plan. Maybe they retired and no longer declare income, or they lost their job. Whatever the reason, they cannot stay without medical insurance. Events like these qualify you for the special enrollment periods, which leads us to our next reason.
There are 2 enrollment periods where you can add your parents to your insurance plan. #1`is the Open Enrollment Period which means everyone can make changes to their plans, start new policies, renew, etc. This is the time to add mom and dad to your health plan. #2 is the Special Enrollment Period. In this period, where you have 60 days prior to a life event (married, had kids, lost coverage, etc.) you can apply for coverage. The perfect time to add your parents. You can learn more about the enrollment periods here.
One of the most common reasons why people may add their parents to their health policy is that their parents simply are not making any income. Without any income you do not qualify for an ACA plan (Obamacare.) So, the best choice is to add them to your existing policy and that way everyone stays with coverage. Low or no income means that you may be eligible for Medicaid so make sure to check that too!
Adding parents to health insurance (requirements)
There are some requirements you need to know before you add your parents to your health plan. First, you must have the minimum income needed to add them. (More on this later.) Second, make sure that they don’t qualify for Medicare as they cannot have both. Third, if they do make any type of income, it must be under $4,000. If they make too much, they will have to file taxes on their own and have their own insurance plan. Also, they must live in the same state as you as Obamacare plans are based on states and different states have different plans. Other requirements include, parents being resident or citizen of the United States as well.
What happens if you add your parents to your health insurance?
After adding your parents to your health plan, it will most likely lower your monthly premiums. More dependents mean more tax credits you receive which in turn makes your plan cheaper. We made a full guide on Premium Tax Credits, which you should check out. There is also a chance that if your parents are old enough, they will be split into another group separately from yours (still the same insurance company.) To further understand, let’s provide an example, between a family of 3 and a family of 4 (assuming the family of 3 added a parent.)
As you can see in the illustration above, a family of 4 gets $1,030 more in premium tax credit which means their health insurance plan will be cheaper! More dependents = more affordable plan. However, you must have the minimum income for your household size, of course.
Obamacare (ACA) Income Limits
One important thing you should know is that if you want to add your parents to your health insurance policy, you must have the minimum income needed to add them. Below is the Obamacare subsidy chart table. For example, the minimum income for a family of 3 is $24,860. Now, if you want to add your mom to your plan, that means you would have to make a minimum of $30,000 now and so on. The more people in the plan, the more the household needs to make (to get premium tax credits.) We suggest finding out how your income taxes will be and who will be in it and then looking at this chart to see if you qualify and if you can add your parents.
This is the 2024 ACA Subsidy chart used to measure if you will receieve any premium tax credit (subsidy).
| Household # | 100% | 400% |
|---|---|---|
1 person | $14,580 | $58,320 |
2 people | $19,720 | $78,880 |
3 people | $24,860 | $99,440 |
4 people | $30,000 | $120,000 |
5 people | $35,140 | $140,560 |
6 people | $40,280 | $161,120 |
7 people | $45,420 | $181,580 |
8 people | $50,560 | $202,240 |
Note: If you are past 400% of the FPL that, doesn’t you won’t be able to get coverage. That just means that your household will not be eligible for Premium Tax Credits (the credit that lowers your monthly premiums.)
How to add parents to health insurance plan
The best way to effortlessly add your parents to your health insurance plan would be to contact an insurance agent/broker (like us here at Cuspide!) We have done this procedure hundreds of thousands of times. Once you confirm that you will claim them as a dependent, we can go head and update the existing application (or make a new one if it is your first time applying) and get mom and dad coverage. We recommend not to try and do it yourself through the health insurance marketplace as it can be very easy to mess something up. The last thing you want is surprises during tax season!
Want to add your parents to your health insurance? Contact us!
Whether it is your first time applying for health insurance or you are trying to renew your policy and update it, we can help. Contact us at Cuspide and we will help! 24/7 insurance agents at your service.
Can you remove someone from health insurance at any time?
It would not be possible to remove someone from your health insurance plan unless you meet a qualifying event under the Special Enrollment Period. If you want to remove someone during the Open Enrollment Period, yes, you will be able to do just fine. To remove someone (like a parent) from your health insurance plan throughout the year, you must meet special circumstances (moving, divorced, new child, etc.) We highly suggest contacting us at Cuspide at (305) 970-8583 if you want to make any changes to your health insurance application!
Frequently asked questions
Cuspide answers the web’s most asked questions regarding adding parents to health insurance!
Can I add my mom to my health insurance?
Yes, you can add your mom to your health insurance plan but only if you claim her as a dependent on your taxes. ACA plans (Obamacare) are based on your household taxes. Whoever is on your taxes must be on your health insurance application (regardless of whether they will apply for coverage or not.) So, if your mom is NOT on your taxes and you do not plan to claim her as a dependent then you cannot add her to your insurance. The only way would be to claim her as a dependent first. If you want further help, contact us at (305) 970-8583.
Can I add my elderly parent to my health insurance?
Yes, you can add your elderly parent to your health insurance if you will claim them as a dependent on your taxes. Also, make sure that they don’t already have Medicare as you cannot have both. However, even if they have Medicaid, they can still get marketplace coverage. If they have income and declare taxes on their own, you cannot add them to your health insurance. They would have to be on their own as Affordable Care Act plans are based on taxes. If you want help, simply contact us here at Cuspide at (305) 970-8583.
Can I claim my parents as dependent for health insurance?
Yes, you can claim your parents as dependent in your health insurance plan if you will claim them as dependents on your federal tax returns! Whatever your household is on your taxes (meaning tax filer, spouse, and dependents) that will be the household you put inside the application. If you are planning to add your parents as dependents on your federal tax returns then yes, they can be included in your health insurance application and even get coverage. As long as you meet the new minimum income requirements for your household size, they will be able to get an ACA plan. We suggest contacting an insurance agent/broker like us at Cuspide!
Next steps for you
Adding parents to health insurance is easy and possible if you do it with the right insurance agent/broker. We suggest finding out a bit more about your federal income taxes and how you will be doing them. Remember that it is only possible to add your parents if you claim them as dependents. So, figure out what you will do so when it’s time to signup for a health insurance plan or renew your insurance, you know what to do.
Your household in your taxes is your household in your insurance application. As always, we suggest contacting professionals, so you do not mess anything up (it has happened many times before!) We hope you learned a little more about adding parents to health insurance. Remember that Cuspide is always there for you!
