Dependent Aging Out: What Happens When Your Child Turns 26?

Under the Affordable Care Act (ACA), young adults can remain on a parent’s health plan until they turn 26. In GoCo, we’ve simplified this transition by making the removal process entirely automatic.

No Action Required

When a dependent turns 26, the employee does not need to submit a Qualifying Life Event (QLE) or manually remove the dependent from their plan. GoCo’s system tracks these dates and will handle the termination of coverage automatically.

When Does Coverage End?

The exact date coverage terminates depends on your company’s specific policy settings. Generally, coverage will end in one of two ways:

• On the Dependent's Birthday: Coverage ends the day the dependent turns 26.

• End of Birth Month: Coverage remains active until the final day of the month in which the dependent turns 26.

Note: Because this process is automated based on your plan's rules, your payroll deductions will also update automatically to reflect your new coverage tier (e.g., shifting from "Family" to "Employee + Spouse") if applicable.

COBRA & Continued Coverage

Losing coverage due to "aging out" is considered a loss of eligibility. This often qualifies the dependent for COBRA or State Continuation.

• COBRA Documents: If eligible, documentation regarding COBRA or continuation of coverage will be organized by your HR team.

• Questions: If you have questions regarding COBRA costs, enrollment windows, or eligibility, please reach out directly to your HR Department.

What if my dependent needs their own plan?

While they are being removed from your employer-sponsored plan, the loss of coverage triggers a Special Enrollment Period (SEP). This allows the young adult to enroll in an individual plan through the Health Insurance Marketplace without waiting for an Open Enrollment period.