Health Insurance Family Coverage Definition

With rising health care costs, family insurance is important

Family health insurance provides medical coverage for a spouse, children, or other dependents. These plans come in the form of group health insurance through an employer, or private health insurance paid individually.

Age limits

Certain states dictate an age limit for dependents under family coverage. For example, in Delaware, only dependents under 24 can receive eligible coverage for group and private health insurance, according to StateHealthFacts.Org.

Family deductible

Some family plans incorporate a family deductible. If anyone in the family covered under the plan, or if a combination of people meet that family deductible, it is met for everyone.

Adult dependent requirements

Many states allow adult dependents on family plans if they meet several criteria. Sometimes they must go to school full time and have no spouse.

Employer cost

Employers offering employer-based health insurance typically pay around 65% to 75% of family insurance premiums. The enrolled employee pays the rest, according to StatehealthFacts.Org.

Employee cost

Generally, family health insurance costs more than individual health insurance for the employee, although this is not always the case.

References

• Kaiser Family State Health Facts: Definition of Dependency by Age, 2009
• Kaiser Family State Health Facts: Average Family Premium per Enrolled Employee For Employer-Based Health Insurance, 2008