Question: Do student health plans count as Obamacare coverage? What happens to the parents Covered California household if one or more dependents are on student health plans?
Answer: Yes. Student health plans count as “minimum essential coverage” under the Affordable Care Act. Students can opt out of their student health plans and purchase coverage through Covered California. A student with no income would be eligible to receive low- or no-cost coverage through Medi-Cal. Also, if students are a tax dependent of their parent(s) or under the age of 26, their eligibility for student health coverage does not make them ineligible to be covered on their parent’s family health plan.
If students choose to stay or accept their student health plan, their parents would still be eligible for tax credits through Covered California, if otherwise eligible. However, parents must correctly state on their application that although their child (the student) is a tax dependent, they are not seeking health coverage through their (the parents’) Covered California health plan.