Choate House on the Pace Pleasantville campus

Young Adult Option

(Enrollment Via Form Only)

Effective September 1, 2009 New York passed a law that gives dependent children the right to continue medical coverage (which includes vision), up to age 30, after they reach the maximum child age in their parent’s policy (“Young Adult Option”).

Who is eligible?

In order to participate, the “Age 29” law requires the coverage, the young adult’s parent, and the young adult to meet certain requirements.

The Coverage

The coverage must:

  1. Be a group or group remittance health insurance policy that includes coverage for dependents;
  2. Be issued in New York State and subject to New York State laws; and
  3. Be fully insured (this benefit does not apply to self-funded plans).

The Parent

The parent must be covered under the group policy as an employee or member of the group or pursuant to a right under the federal Consolidated Omnibus Budget Reconciliation Act (COBRA) or state continuation coverage law.

The Young Adult

The young adult must:

  1. Be unmarried;
  2. Be 29 years of age or under;
  3. Not be insured by or eligible for comprehensive (i.e., medical and hospital) health insurance through his or her own employer;
  4. Live, work or reside in New York State or the health insurance company’s service area; and
  5. Not be covered under Medicare.

Please note that the young adult does not have to live with a parent, be financially dependent on a parent, or be a student.

Since the law became effective for policies that renewed on or after September 1, 2009, the Young Adult Option was added to Pace University’s medical plan effective July 1, 2010, which is the first contract renewal date after September 1, 2009. Dependent children can sign up for Young Adult coverage:

  • During an initial 12 month “special enrollment” period, which begins when the parent’s group policy is renewed on January 1, 2021;
  • Within 60 days after reaching the maximum age or experiencing a qualifying life status change, as described in the parent’s plan;
  • During any future Open Enrollment period held for the group plan.

If you have a dependent on COBRA because they aged off of the Pace University medical plan, they may elect the Young Adult Option at this time. Please keep in mind that once COBRA coverage is waived, it may not be reinstated.

Please note that Pace University’s dependent eligibility for the Cigna medical plans will remain at age 26, with coverage until the end of the calendar year. Upon aging off the medical plan, the dependent will have the opportunity to enroll in the Young Adult Option or COBRA.

For those dependents aging off the plan that elect the Young Adult Option, it will provide an extension to coverage to age 30. Continuation will cease on the earliest of the following events:

  • The dependent’s 30th birthday;
  • The dependent voluntarily terminates coverage;
  • The employee (insured) loses coverage;
  • The date the dependent become covered under another group plan*;
  • The date the dependent marries*;
  • The date on which a premium due is not paid.

*A dependent who loses coverage and then regains eligibility by getting divorced, or losing other coverage may again apply for coverage. Thus, a dependent can go in and out of this continuation coverage as he or she loses coverage and then becomes eligible once again.

This extension coverage is to be paid for 100% by the dependent. Pace University will not contribute to the cost of the dependent’s premium. The premium for the Young Adult Option will be billed by and shall be paid directly to Pace. As permitted by the law, Cigna will charge 100% of the single subscriber or employee rate for each dependent enrolled in the Young Adult Option.

Young Adult Option Premium Rates

Covered Parent’s Medical Plan (January 1, 2021 through December 31, 2021)

Individual Coverage: Consumer Core HDHP
Monthly Cost: $871.77

Individual Coverage: Network Core Plan
Monthly Cost: $1,199.87

Individual Coverage: Choice PPO
Monthly Cost: $1,269.75

COMPARISON of Young Adult and COBRA Monthly Rates January 1, 2021 – December 31, 2021

Consumer Core HDHP Plan
Young Adult Rate
$871.77 per month

COBRA Rate (Including 2% Administration Fee)
$889.21 per month

Network Core Plan
Young Adult Rate
$1,199.87 per month

COBRA Rate (Including 2% Administration Fee)
$1,223.87 per month

Choice PPO Plan
Young Adult Rate
$1,269.75 per month

COBRA Rate (Including 2% Administration Fee)
$1,295.15 per month