College students face unique health insurance challenges — often too old for some plans, not yet fully independent, and navigating coverage in a state away from home. Here’s what students and their families need to know for 2027.
Option 1: Stay on a Parent’s Plan Until Age 26
The most common option. Under the ACA, children can stay on a parent’s health insurance plan until they turn 26, regardless of:
- Student status (in school or not)
- Marital status
- Financial independence
- Whether the student lives at home
- Whether they’re claimed as a tax dependent
This is often the easiest and most affordable option — if the parent’s plan has good nationwide coverage. The key consideration for college students: network access away from home. HMO plans tied to a local network may leave a student out-of-state with no in-network coverage except emergencies. Check whether the parent’s plan has national PPO access or student-friendly telehealth options.
Option 2: University-Sponsored Student Health Insurance
Most colleges and universities offer student health plans. These are typically competitively priced and structured for the campus context — with on-campus clinic integration, mental health services, and coverage designed for the student population. However, they vary widely in quality and comprehensiveness. Review what’s covered (especially mental health and out-of-area care) before assuming it’s sufficient.
Option 3: Marketplace Plan
If a student is financially independent (filing their own taxes, not claimed as a dependent) and their income qualifies, they can enroll in a marketplace plan with premium tax credits during 2027 Open Enrollment. A 20-year-old with low income may qualify for a very low-cost or $0-premium Bronze plan.
If claimed as a dependent on a parent’s tax return, the student uses the parent’s income for subsidy calculations — which typically disqualifies them for marketplace subsidies unless the parent’s income is within a qualifying range.
Key Consideration: Mental Health Coverage
Mental health coverage has become increasingly important for the college-age population. All ACA-compliant plans must provide mental health and substance use disorder services at parity with medical benefits. Student health plans vary — confirm telehealth mental health access, therapy session limits, and out-of-campus coverage before enrolling.
Turning 26: Planning the Transition
When a student turns 26 mid-year, they lose parent’s coverage — a qualifying life event that triggers a 60-day SEP. If turning 26 in late 2026 or early 2027, coordinate with Open Enrollment timing to avoid a gap in coverage.
Questions about health insurance options for a college student in your family? Contact Paul at Garden State Benefits for a no-cost, no-obligation review of your 2027 options — he’s a licensed independent broker serving individuals and families across 26 states.