Health Care Reform: Coverage for Adult Children
Monday, May 24th, 2010 | Human Resources, Life & Health
Each year in June, many young people – because of their age, student status or other factors – become ineligible as dependents on their parents’ insurance policies. Health care reform legislation will extend dependent coverage to age 26 for plan years beginning September 23, 2010. Adult children under the age of 26 are eligible even if they no longer live with their parents, are not dependents on their parents’ tax return, or are no longer students. The policy applies equally to young adults who are both married and unmarried. It does not; however, apply to those who are eligible for other group health coverage.
While this is great news, it also means that many dependents would face a coverage gap during the months before this provision is fully implemented. To help these dependents, carriers will allow young men and women to remain on their parents’ policies even before this health care reform provision takes effect. Beginning June 1, benefits will continue to be provided to dependents who – because of their age, student status or other factors – would lose coverage during the gap period between June 1, 2010, and the September 23, 2010, effective date. This extension of coverage will not be retroactive; however, dependents that aged out before June 1, 2010, can be added back onto a parent’s policy during your group’s next open enrollment period on or after September 23 in accordance with the new law.
Employers with 100 or more employees have the option to not offer this extended coverage.
The Department of Labor posted the following information explaining the dependent coverage component of the Act – Read More
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