Health Insurance

[nurseypoo]

Question:

Do you keep your plebe/cadet on your health insurance, although they will be covered by Tricare?

 

[bossf51]

This is always a subject of controversy, along with such topics as tax deductibility and tighty wities.

We kept our son on since it did not cost any extra. This is a good back up for certain things that are not covered as well by tricare(chiropractic for example). Also, not every kid makes it through the first year at the academies and sometimes it's not easy getting them back on your regular insurance.

So just based on personal exp, I would keep him on.

 

[USNA69]

This is always a subject of controversy, along with such topics as tax deductibility and tighty wities.

Don't want to know about the tighty wities but what is the controversy over tax deductibility??

This is from the Academy website:

Q: Sould we continue coverage under our family insurance?
A: It is a good idea to continue family medical coverage for your student. While they remain students they are of course covered for all medical issues by the Navy Tricare system, but if they leave for any reason (especiially medical), it can be a problem to get the family coverage to pick them back up. Pre-exiting conditions might not be covered under a new policy and this has been an issue for some unfortunate families.

Many homeowner policies do not cover loss of personal property on a Military Base. Since USNA is a base, it is a good idea to get insurance coverage for their personal belongings. USAA offers a very inexpensive policy. Call them at 1-800-292-856 for information. But first check with your homeowners insurance to see if your Mid is already covered.

 

[bossf51]

Every year parents ask if they can still deduct their service academy kid on their income tax. Usually first year they can but not after that.

 

[USNA69]

Every year parents ask if they can still deduct their service academy kid on their income tax. Usually first year they can but not after that.

Yep. That is it. Pretty straight forward.

 

[jamzmom]

A heads up to new parents on the health insurance issue. Received a letter from our insurance carrier that they are going to cancel son if we do not provide verification that he is at his academy. They were provided this proof back in 2005 when he went in. Soooo.... I contacted the academy to request a student enrollment verification letter that I will fax to the insurance folks today. They also wanted a tuition invoice. Trying to explain to the insurance folks that we don't pay "tuition" at USMMA but pay "fees" was fun.

The academy covers minor illness & minor injuries so do keep your kid on your policy. Just be sure to copy your insurance company that your child is at an academy. THEN keep a copy (which I did not) of that verification letter for later use.

 

[Zaphod]

A heads up to new parents on the health insurance issue. Received a letter from our insurance carrier that they are going to cancel son if we do not provide verification that he is at his academy. They were provided this proof back in 2005 when he went in. Soooo.... I contacted the academy to request a student enrollment verification letter that I will fax to the insurance folks today. They also wanted a tuition invoice. Trying to explain to the insurance folks that we don't pay "tuition" at USMMA but pay "fees" was fun.

Good grief......

 

[Just_A_Mom]

Health Insurance:

Whether or not to keep your kid on while at an Academy:

If canceling your child will save you money - then by all means consider it. If you son/daughter then leaves for any reason he/she is eligible to be picked up again by your insurance company subject to their terms of enrollment. This is the Law.
For instance, my child is covered until she is 19 or 23 if she is enrolled in school full time. So she enrolls, then leaves and is under 19 then no problem she is added back. If she leaves the academy after 19 then she must be enrolled in another institutuion of higher learning.
Different policies have different age requirements.

Also, be aware you insurance policy if you do keep your cadet/mid on will probably "Coordinate benefts" which is a lot of "fun" paperwork wise. I would think tricare would pay first.

Bottom line: If you will save a significant amount of money on premiums - cancel your cadet/mid and send them the check every month (haha just kidding!) or save it for airfare to visit YOU!
Check with your benefits person where you work, in deciding to cancel or not.

Note to Jamzmom: Ahhhh yes Insurance companies check periodcally to see if your child is still enrolled in school if they are required to be enrolled for coverage. Mine checks every year on my older daughter.

 

[Zaphod]

Just something to ponder.... Perhaps Doc could clarify or correct me, as appropriate.

If a Mid/Cadet is injured severly enough to be discharged from USxA, wouldn't they be covered under the VA or something, if only for that condition? Wouldn't that make the idea of keeping them insured "just in case" less attractive?

Just asking. I honestly have no idea, nor do I know what my parents did with me when I was going through. I'll have to ask Dad.

 

[USNA69]

Health Insurance:

Whether or not to keep your kid on while at an Academy:

If canceling your child will save you money - then by all means consider it. If you son/daughter then leaves for any reason he/she is eligible to be picked up again by your insurance company subject to their terms of enrollment.

The sole reason to keep your insurance is if your child is diagnosed with a serious disease that causes them to be disenrolled, not eligible for VA, and subsequently unemployable. There is no COBRA for leaving the SAs. Insurance, as a rule, will not cover preexisting conditions. Odds are against needing it, but medical costs can be prohibitive.

The Naval Academy does recommend that parents retain the midshipman as long as possilbe.

 

[Just_A_Mom]

The sole reason to keep your insurance is if your child is diagnosed with a serious disease that causes them to be disenrolled, not eligible for VA, and subsequently unemployable. There is no COBRA for leaving the SAs. Insurance, as a rule, will not cover preexisting conditions. Odds are against needing it, but medical costs can be prohibitive.

The Naval Academy does recommend that parents retain the midshipman as long as possilbe.

The laws concerning insurance have changed. If you have a "Life Changing Situation" then you can be re-enrolled without worrying about pre-existing conditions. Also, you would not have to wait for "Open Enrollment".
This is why I suggest checking with your Benefit Administrator and/or Insurance company.

 

[Profmom2]

would advise against canceling any insurance coverage of your mid because it saves you money. Even the Academy’s paperwork strongly recommends maintaining private insurance on your mid. Although “it may be the law” the insurance carrier can require proof of insurability or there is an illness our insurance requires a one year wait before being added back onto the policy. From the moment of discharge from USNA until fulltime enrollment with paid tuition there would be a period of no coverage. If something would happen in that time frame it would affect your child financially - and probably you – for a very long time.

As USNA69 pointed out there is no Cobra for leaving a SA.

 

[USNA69]

This is why I suggest checking with your Benefit Administrator and/or Insurance company.

Great advice.

 

[Just_A_Mom]

You are all correct - no COBRA for leaving an SA.
Allow me to qualify:
The ONLY reason I offered my "advice" on this one is that health insurance is extremely expensive - I am extremely fortunate that my plan is very inexpensive and I would cover my child at no extra cost (family plan).
Some people pay hundreds of dollars each month for group insurance by their employer. Consider the case of a parent who pays a lot for insurance. If they cancel their child their plan moves from family to 2-party or 2-party to single.
They do the math and can save several hundred $$/month by canceling their child off their insurance. Anyone in this situation should consider carefully their options and consult with their benefit administrator.

 

[KP82/10]

I realize that this thread is mostly about health insurance but reading through the whole thread the post about tax deduction caught my eye. Why can't you claim your Mid as a tax deduction after the first year? They are still dependent on you for paying fees, sending them spending money, they come live with you on breaks, paying plane fare, paying for the cell phone bill, paying for insurance on their car while it sits in the driveway, paying for their tightie whities.....

 

[USNA69]

Check with your tax expert but my understanding is that you have to provide more than 50% of the support in order for them to qualify as a dependent.

 

[jamzmom]

Heh... Love your avatar. Glad you signed on here. It'll help busy up the KP threads!

Well... Heres the thing I was told. (disclaimer: I am not a tax professional & don't play one on the internet) The other academies operate differently in that their kids are paid those stipends. Since our kids do not receive this stipend, its a little different in our cases. KP kids are paid below the minimums while at sea as well. Our CPA claims our KP kid on our taxes & will until graduation. Other KP parents have advised & done the same all four years. There was much controversary over this the last few years and folks don't take what I do as concrete.

 

[bossf51]

Taxes: The 50% rule is key. The kids at the academies get paid around $9k a year. They get just about everything else paid for(food, shelter, tuition etc). We parents no longer pay over 50% of their support so we can't claim them. Simple as that.

Insurance:If it's not an extra expense...KEEP THEM ON YOUR POLICY. Tricare is good but not always convenient and doesn't always cover things as visits to your family chiropractor(when home on leave, just giving this as an example). So keep them on.

 

[Profmom2]

Our tax attorney also has pointed out in the tax code where it is possible to claim for the 4 years.

As not either an accountant or an attorney I will not offer opinion but everyone should make sure this question is asked to the correct individual and then follow what is advised for their sistuation and only their situation.

 

[jamzmom]

9K! I like it! Shoulda made my brat go there. LOL (joking...) Kp kids will 50 buck ya to death!

Truly, just check with a tax professional on this to be safe.