Breaking the Code: Three Documents Your 18-Year-Old Needs
By: Jeffrey Krueger, CPA, MSA, CFP®
As the New Year sets in, a number of young adults will be ending their winter break and getting ready for the new school semester to start. Many parents may view their sons’ and daughters’ college years as a gradual transition from dependent childhood to independent adulthood. However, there are some areas where college students are considered adults under the law and parents’ rights to information can be restricted.
In my college years, a friend of mine was in the middle of her sophomore year at one of the nearby colleges. She woke up with a severe chest pain and ended up being rushed to the hospital. Her roommate had notified the girl’s parents of the situation. Scared for their daughter, the parents called the hospital asking for details. The parents were rebuffed by the nurses under the Health Insurance Portability and Accountability Act (HIPAA) that protects the privacy of patients and their medical records. Even though the daughter was still under the parent’s health insurance, as soon as she turned 18, the parents were no longer allowed access to their daughter’s medical information without her permission. While my friend did not intend to keep her parents in the dark during her emergency, she was in too much pain to give authorization.
What could have been done?
There are various documents that can help alleviate a situation such as this:
HIPAA Authorization: This form allows a healthcare provider to disclose your health information to anyone you specify. Note that this document does not have to be all or nothing, and young adults can specify which information is disclosed. This document alone would have enabled my friend’s parents to get information from the hospital.
Healthcare Proxy/Medical Power of Attorney: This form appoints an “agent” to make medical decisions on your behalf in case you are incapacitated and cannot make decisions for yourself.
Durable Power of Attorney: While not specific to healthcare decisions, a durable general power of attorney appoints an “agent” the ability to act on your behalf in a broad range of matters. Whether you become incapacitated or are simply studying abroad for a semester, the agent would be able to sign a tax return, complete financial transactions, or sign legal documents. Note that the durable power of attorney can also be limited in scope.
While an attorney is not required to get these forms in order, their involvement can benefit in making sure you are using the right form, explaining it, and advocating on your behalf in case something goes wrong.
As for my friend, she is fully recovered and healthy with a new set of legal documents, should an emergency ever arise again.
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