We’ll keep our son on our policy until he’s 26, BUT:
1. He’ll pay the premium increases (for TriCare, they go up by $200 a month for 2013 and $176 a month after that.)
2. He’ll pay all of his own co-pays
I think that the big difference is that we’re military. Our kids can’t just stay on our policies after 21 (23 if a full-time college student) like they were before. We have to buy TriCare Young Adult. Also, there’s no more free-ride for them. There are co-pays and fees, even with TriCare Young Adult Prime.
This is how it should be everywhere. Let them stay on their parent’s policy, but CHARGE THEM FOR IT.
I believe that it does work that way in the private sector. Also, the employer does not even have to subsidize the dependents’ coverage, even if they subsidize the employee’s (and spouse in some situations) coverage. The employer can charge the employee a FULL ADULT premium for the 26 year old.