You turn on the news, and you hear, “RABBLE RABBLE HEALTH CARE RABBLE RABBLE LOSS RATIO RABBLE RABBLE PART D COVERAGE GAP!” You immediately turn it off because your ears start hurting.

OK, so we all know that health care is the new big issue in the United States. And we know that the President just signed a bill that will change how health insurance operates in this country. But what exactly is going on?! We see people arguing all the time on TV about it, but they seem to want to make it complicated. What exactly is going to change?

The truth is that so much changed that we would need to write a whole new topic just about the Affordable Care Act, and fifteen minutes in, you would be snoring. It’s just WAY too much information.

However, in keeping with financialfootprint’s mission to keep you in the know, there is a section of the Affordable Care Act that young adults and their parents should definitely keep in mind.

Young Adults and the Affordable Care Act: Grab Hold of that Umbilical Cord

Starting September 23, 2010, young adults under age 26 can stay on their parent’s health plan.  And why is this important?

In the past, insurance companies kicked young adults off their parents’ health plan when the young adult graduated college, left home, or was otherwise not dependant on their parents’ tax return anymore. Talk about kicking you out of the nest.

The problem with this is that it left a lot of young adults out in the cold without health insurance. Buying new health insurance costs young adults some serious money. And as much as young adults like to believe they never get sick or hurt, they actually do get into a lot of accidents and end up with a gigantic medical bill.

The Affordable Care Act is like when you’re bowling and have a bumper guard. Now young adults can build up their careers while their parents sigh with relief knowing that at least their kid’s health will be covered.

Specific Information: It’s All in the Details

• The Affordable Care Act covers as many young adults under 26 as possible. Health plans that will cover dependants must also offer to cover the health plan owner’s children up to age 26 unless the young adult has an offer of health coverage from an employer.
• Health plans must offer young adults a chance to get on their parent’s plan on the first day of the new policy year, and young adults have 30 days to decide. You can ask your parents about this.
• Adding a young adult to a family plan may not cost the parents a lot of money. You could even chip in!

What You and Your Parents Need to Do: Break a Leg…Not Really!

• Watch for an open enrollment period. On or after September 23, 2010, your parent’s insurance company or employer must tell your family about an enrollment period to join your parent’s plan. Wait for it, or ask them yourself.
• If you are already on your parent’s plan, watch for an offer to stay on the plan until you turn 26. All you and your parents need to do is sign up and then pay the new premium.

As always, your personal finance guide will help you understand anything else you want to know about the Affordable Care Act. But do us a favor and don’t go climbing mountains without safety gear just because you don’t have to worry about health insurance for now.