Child Only Medical Insurance Plans

Author: Kelley Filice Jensen

The concept of buying your child his own medical insurance seems odd and unnecessary, but often times this odd concept can save your family a lot of money, and provide your child with excellent health insurance.  Why?  If your health insurance is through your employer and your employer pays 100% of your health insurance, but pays 0% of your family and dependents, then you pay the cost of including your child on the company’s group health insurance plan.  The rates charged to groups are much higher and can leave you paying more than double an individual policy.

What is a child only medical insurance plan?

An individual health insurance plan for your child, in his name.

How is it different than including my child on the health insurance plan I have through my job?

The health insurance that you have through your job is a group health insurance plan, the group being the company that you work for.  A child only plan is an individual health insurance plan for your child alone.

But my child is allowed on the group plan, so why would I want to get him an individual plan?

Your child is eligible to be part of your company’s group health insurance plan because he/she is your dependent. But, your employer may not pay the cost of your child’s health insurance plan.  Some employers pay more of the cost for insurance dependents than others.  Some pay none, which means that if you would like your child to be on your Company’s group health insurance plan, you pay for it out of your own paycheck.

Why would a child only insurance plan be better if I am paying for it anyway?

Costs.  Group health insurance rates are much more expensive than individual health insurance rates because they are calculated on averages.  So, depending on what your employer pays for your dependents, you could be paying more than double the cost for insuring your child.  An example of the difference in monthly premiums for your child: $230 on a group plan vs. $85 on an individual health insurance plan.  That makes a big difference when your employer is not paying anything for your dependent.

If I get my child an individual plan, how long can he have it?

As long as you or your child keeps paying the premiums, the plan is portable.

Other things to consider?

Yes, consider getting adult children an HSA.

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One Response to “Child Only Medical Insurance Plans”

  1. Roberto says:

    There’s certainly a lot to know about this issue. I really like all
    of the points you’ve made.

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