Did you know in New Jersey, you have the option to stay on your parent’s health insurance policy until age 31?

Under most employer-provided group health insurance plans, on your 26th birthday, you, the adult child, become ineligible, or “age out,” for coverage under your parent’s policy. But there are still a few options available to you. Here’s what you need to know:

• Employer or School Coverage: If you're employed or enrolled in school, check if they offer group health insurance. This is often the easiest and most cost-effective option.
• Individual Health Insurance Plans: You can purchase a plan through the federal health insurance marketplace at healthcare.gov. Depending on your income, you might qualify for subsidies to lower your costs.
• Extending Your Parent’s Coverage: Under the federal COBRA Act, you can extend coverage for a period of 18 months from your 26th birthday.  Under New Jersey law, however, a longer extension is available--until the adult child’s 31st birthday. This extension is known as New Jersey Dependent Under 31 Coverage or simply, DU31.

What is DU31 Coverage?
DU31 allows eligible adults in New Jersey to remain on their parent's group health insurance until their 31st birthday. This extension offers the same coverage as dependents under the parent's plan but comes with specific rules and costs.

• DU31 coverage is not automatic. You must elect to obtain coverage. 
• The health care insurance is exactly the same as the insurance provided to dependents by the parent’s group health care plan.  
• The insurance is not free. You pay 102% of the premium for the group health insurance plan. The employer does not pay any share of this premium. 

There are some limitations on DU31. To qualify:

• The parent must be enrolled in a group health insurance plan provided by an insurance company located in New Jersey (or the State Health Benefits Plan).
• The parent must have coverage that includes dependents. If the parent terminates coverage, the your DU31 coverage terminates.  
• You cannot be enrolled in another group health insurance plan or Medicare.
• You cannot be married or in a civil union, and cannot yourself be a parent.

Within these limitations, DU31 coverage is broadly available.  DU31 does not require that the adult child:

• be low income or economically dependent on the parent;
• live in the same house with the parent;
• exhaust coverage continued through COBRA;
• be ineligible for other coverage;
• have previously been covered under a parent’s group health insurance; or
• demonstrate insurability, i.e., absence of prior health conditions.

Also, your parent is not required to be a New Jersey resident.

You must apply for DU31 coverage within a period extending from 30 days before your 26th birthday to 30 days after. If you do not apply then, you may apply during any subsequent open enrollment period for your parent’s group health insurance. Under DU31, you may obtain benefits, terminate benefits, and re-obtain benefits any number of times before your 31st birthday.  

You can apply through your parent’s employer or through the insurance company that provides your parent’s group health insurance. 

The DU31 can come with a variety of nuances. For more details, visit https://www.nj.gov/dobi/division_consumers/du31.htm.