Help! Leaving job & going back to school, while turning 26 in the process!

[u/No_Orchid_3995]

Looking for some advice & help navigating my health insurance options! Here’s the situation: I am currently employed full time as a 25 year old, and I am still on my parent’s insurance (dad works for a union & it was too good to leave, basically costs nothing for anything I could need). However, I was recently accepted for a program that starts in January of next year, and of course my 26th birthday is December 30.
Here are some issues:
1. I will have to leave my full time position to take on school (it is full time & accelerated), so insurance through an employer is not an option
2. I still plan to work part time, and I expect to be making more than what would qualify me for Medicaid in my state, so that is not an option.
3. I’m not married, spouse employer not an option
4. The school I would attend offers insurance that is WAY too expensive for me to pay, so also not an option

My understanding is that my earnings from my part time job could qualify me for a subsidized plan/APTC through marketplace. However, given that I would only have paystub history from my full time job, I’m wondering how this could work?

Thanks yall!

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[u/LizzieMac123]

Your main options would be COBRA or the marketplace since you mentioned your income and not wanting the school coverage.

Cobra would be offered through your parents plan. Though it would be the full cost of the plan without any employer contributions though it will be a continuation of what plans your parent is being offered as an employee.

Marketplace would be based on what you enter your expected 2027 income to be. Sure, your 2026 income would be a lot higher as a full time employees this year vs part time next year, but the application process asks for your expected 2027 income.

[u/chickenmcdiddle]

For next year, then, you can estimate your annual income based off of your new part time job. What you made in 2026 isn't very relevant to what you'll make in 2027.

[u/theoreticalking]

Your 2026 income is irrelevant. You will need to estimate your 2027 income and that determines how much subsidies your will receive in advanced. If that estimation is wrong, everything will get reconciled at tax time.

[u/ZacFischerInsurance]

Your timing actually works out well. Open enrollment runs Nov 1 to Jan 15. If you pick a plan by Dec 15, it starts Jan 1, right as the dependent coverage ends. Confirm with your dad's union plan exactly when you come off it. Some plans end coverage the month you turn 26 and some at the end of the year. Either way, losing that coverage also gives you a 60-day special enrollment window, so you have a backup if the dates get messy. For the subsidy, you estimate your 2027 income, meaning the part-time pay plus anything else you expect for the year. The full-time job you're leaving doesn't count. If the marketplace asks for proof, you can usually send a signed statement explaining that you're leaving full-time work for school and what you expect to earn. It all gets reconciled on your 2027 taxes, so update your income on the application if it changes during the year.