Continuation of Health Care Coverage for Young Adults

Insurance carriers are reacting to the first phase of Health Care Reform: Change in dependent age requirements.

Effective June 1st, 2010 many insurance carriers will continue coverage for young adults under age 26 who are currently covered under their parent’s policy. This change will be made for all fully insured groups. In general, a dependent child is covered until the end of the year in which that dependent turns 23. In anticipation of the September 30th Federal mandate, many insurance carriers have begun adopting policies that become effective June 1st. Why? Dependent children are graduating from college and would normally lose their coverage or have a gap. Dependents will now be eligible to be added to their parent’s policy during the period of June 1st, 2010 through September 30th, 2010 with the effective date being the 1st of the month after the enrollment is received. Dependents not enrolled during this time period will not be added until the group’s renewal. In essence, the insurance carrier is preempting the September 30th mandate. Please call our office to determine whether your insurance carrier is modifying their existing dependent age requirements.

Burman S. Clark

Burman S. Clark

Burman S. Clark, RHU, CSA is the President of Muneris Benefits and a licensed insurance broker and consultant. His independent practice and focuses on employee benefits, individual life, disability, medical, and senior products. Burman has traveled extensively and provided guidance to large employer associations with regards to the Affordable Care Act.