Hi someone posted this on one of my chd groups and I thought this might be helpful for some of the younger people here. this is great news for us, as Justin getting insured has been something I worry about ,Lyn
Health Insurers Must Cover Adult Children
Growing Number of States Pass Laws Raising Dependent Age Limits on
Family Policies
The Wall Street Journal
April 11, 2006; Page D1
A growing number of states are passing laws requiring health
insurers to cover children under their parents' plans well into
adulthood.
Most group or private health-insurance plans end eligibility for
dependents when a child turns 19. The age limit is extended for full-
time students, but still generally tops out at about 22 or 23. Now,
at least 22 states have recently passed laws, or are considering
legislation, that require insurers to offer coverage to even older
dependents, often whether they are in school or not. Although adding
an adult dependent could raise the premium that a family must pay,
lawmakers expect the added cost would be less than if the dependent
purchased a separate policy.
In New Jersey, a law taking effect next month requires health
insurers to cover single adult dependents until the age of 30. The
law applies to most group health plans, which employees typically
receive through their work. A law in Colorado that went into effect
in January mandates that dependents be covered until they turn 25.
Lawmakers in that state are now considering a bill that would
further extend coverage to an adult dependent's minor children. New
Mexico, Utah and Massachusetts have enacted laws along the same
lines, while other states are considering similar legislation,
according to the National Conference of State Legislatures.
Policy analysts say lawmakers are concerned about the growing cost
of picking up the tab for some of the nation's 46 million people
that aren't covered by health insurance. In recent years, young
adults, from 19 to 34 years old, were the fastest growing group of
uninsured, according to a recent study by the Kaiser Family
Foundation, a health-care policy research group. The federal and
state governments spent an estimated $41 billion in 2004 on so-
called uncompensated medical care, including paying hospitals for
treating uninsured patients, according to a national health-care
survey.
Some employers and business groups say the measures will drive up
the cost of health insurance for everyone and may force more
employers to stop offering it. A survey by the Kaiser foundation
found that 60% of companies offered health insurance to their
workers last year, down from 69% in 2000. The majority of survey
respondents that don't offer coverage cited cost as a key factor.
Health-care premiums rose an average 9% last year and were up 11% in
2004, according to the foundation.
Some observers have mocked the trend as another example of the
younger generation's difficulty leaving the nest, a cultural
phenomenon so widespread as to have spawned its own hit
film, "Failure to Launch," and at least one TV series, Fox's "Free
Ride." One factor: With college-tuition costs soaring, the average
student graduated earlier this decade with more than $19,000 in
debt, adjusted for inflation, up from about $12,000 in the early
1990s, according to the National Center for Education Statistics.
Kaiser Foundation Health Plan of Colorado, which provides health
insurance for 460,000 Colorado residents, opposed the bill because
it "attempts to broaden coverage by shifting the burden to
employers," says Leo Tokar, vice president of marketing. The company
is passing along to its customers a 1% premium increase to cover the
additional costs stemming from that state's new law, he says. Kaiser
customers expect their costs to go up, in turn. Coors Brewing Co., a
subsidiary of Molson Coors Brewing Co., says the measure would add
$300,000 to the annual premiums the company pays for its 3,000
Colorado employees. Aerospace giant Lockheed Martin Corp. also says
it expects higher health-care costs. Lockheed is based in Bethesda,
Md., but runs several operations in Colorado that employ 8,000
people.
The Colorado law, which applies both to group and privately
purchased individual health plans, requires insurers to offer a
parent continuing coverage for an unmarried child who is under 25.
Insurers have the option to charge an additional premium. The child
must live at the same address as the parent, or be financially
dependent. But financial dependency isn't defined by the statute,
nor is the premium that employers can charge. The law doesn't apply
to federal employee plans or plans that are self-funded by an
employer.
Colorado State Sen. Brandon Shaffer, who co-sponsored the law, said
the target population was part-time students and young working
adults who still rely on their parents for financial support. Nearly
40% of the state's uninsured were 18 to 34 years old in 2004,
according to the Colorado Health Institute, an independent research
group. The figure is in line with the national average.
The New Jersey law provides for dependents to be covered up to the
age of 30, but allows insurers to charge a separate premium for
these older dependents. State Assemblyman Neil Cohen, who sponsored
the bill, estimates the additional coverage could cost an average
family between $2,500 and $3,000 a year, well below the roughly
$7,000 cost of an individual policy in the state. Some critics say
his cost estimate is unrealistically low. Mr. Cohen said he expects
100,000 to 200,000 young people would find coverage under the new
law.
Several states are considering similar bills. A Rhode Island bill
would phase in coverage of older dependent children over several
years, raising the age limit to 21 in 2007, 23 in 2008, and 25 as of
2009. Dependents would have to be unmarried and financially
dependent to qualify, but they wouldn't have to be enrolled in
higher education. In Massachusetts, a bill awaiting the governor's
signature states that dependents are eligible for coverage until
their 25th birthday, or two years after their parents no longer
claim them on their tax returns, whichever comes first. The bill is
part of a comprehensive health-insurance package that requires every
individual in the state to obtain coverage.
Some states' legislation is narrowly crafted to address specific
problems. In New Hampshire, a bill would require insurers to
continue coverage for full-time students who have to take a medical
leave of absence due to illness or injury. A Pennsylvania law
enacted last year states that full-time students whose studies were
interrupted by National Guard or armed-forces reserve duty must be
allowed extended health-care benefits until they finish school,
regardless of their age.
At least four states, including New York and Minnesota, currently
require health plans to cover grandchildren if they are financially
supported by the grandparent or are in their legal custody. In
Texas, a grandchild who is a legal dependent must be covered until
his 25th birthday as long as he or she remains unmarried. Coverage
can't be terminated even if the child is no longer a dependent for
tax purposes, according to the National Conference of State
Legislatures.
To determine if extended dependent coverage is the best choice,
parents should compare it against an individual health-care policy
or the federally mandated Consolidated Omnibus Budget Reconciliation
Act, or Cobra. Adult children are allowed to sign up for Cobra when
their eligibility ends under their family's plan. Cobra is most
often used to provide continuing health-care coverage when an
employee leaves his or her job. Under Cobra, continuing group
coverage is available for a maximum 36 months, but requires the
individual to pay the full premium cost under the health plan plus
an administrative fee of 2%. In 2005, the average annual premium for
individual coverage under a group policy was $4,024, according to a
national survey.
Health Insurers Must Cover Adult Children
Growing Number of States Pass Laws Raising Dependent Age Limits on
Family Policies
The Wall Street Journal
April 11, 2006; Page D1
A growing number of states are passing laws requiring health
insurers to cover children under their parents' plans well into
adulthood.
Most group or private health-insurance plans end eligibility for
dependents when a child turns 19. The age limit is extended for full-
time students, but still generally tops out at about 22 or 23. Now,
at least 22 states have recently passed laws, or are considering
legislation, that require insurers to offer coverage to even older
dependents, often whether they are in school or not. Although adding
an adult dependent could raise the premium that a family must pay,
lawmakers expect the added cost would be less than if the dependent
purchased a separate policy.
In New Jersey, a law taking effect next month requires health
insurers to cover single adult dependents until the age of 30. The
law applies to most group health plans, which employees typically
receive through their work. A law in Colorado that went into effect
in January mandates that dependents be covered until they turn 25.
Lawmakers in that state are now considering a bill that would
further extend coverage to an adult dependent's minor children. New
Mexico, Utah and Massachusetts have enacted laws along the same
lines, while other states are considering similar legislation,
according to the National Conference of State Legislatures.
Policy analysts say lawmakers are concerned about the growing cost
of picking up the tab for some of the nation's 46 million people
that aren't covered by health insurance. In recent years, young
adults, from 19 to 34 years old, were the fastest growing group of
uninsured, according to a recent study by the Kaiser Family
Foundation, a health-care policy research group. The federal and
state governments spent an estimated $41 billion in 2004 on so-
called uncompensated medical care, including paying hospitals for
treating uninsured patients, according to a national health-care
survey.
Some employers and business groups say the measures will drive up
the cost of health insurance for everyone and may force more
employers to stop offering it. A survey by the Kaiser foundation
found that 60% of companies offered health insurance to their
workers last year, down from 69% in 2000. The majority of survey
respondents that don't offer coverage cited cost as a key factor.
Health-care premiums rose an average 9% last year and were up 11% in
2004, according to the foundation.
Some observers have mocked the trend as another example of the
younger generation's difficulty leaving the nest, a cultural
phenomenon so widespread as to have spawned its own hit
film, "Failure to Launch," and at least one TV series, Fox's "Free
Ride." One factor: With college-tuition costs soaring, the average
student graduated earlier this decade with more than $19,000 in
debt, adjusted for inflation, up from about $12,000 in the early
1990s, according to the National Center for Education Statistics.
Kaiser Foundation Health Plan of Colorado, which provides health
insurance for 460,000 Colorado residents, opposed the bill because
it "attempts to broaden coverage by shifting the burden to
employers," says Leo Tokar, vice president of marketing. The company
is passing along to its customers a 1% premium increase to cover the
additional costs stemming from that state's new law, he says. Kaiser
customers expect their costs to go up, in turn. Coors Brewing Co., a
subsidiary of Molson Coors Brewing Co., says the measure would add
$300,000 to the annual premiums the company pays for its 3,000
Colorado employees. Aerospace giant Lockheed Martin Corp. also says
it expects higher health-care costs. Lockheed is based in Bethesda,
Md., but runs several operations in Colorado that employ 8,000
people.
The Colorado law, which applies both to group and privately
purchased individual health plans, requires insurers to offer a
parent continuing coverage for an unmarried child who is under 25.
Insurers have the option to charge an additional premium. The child
must live at the same address as the parent, or be financially
dependent. But financial dependency isn't defined by the statute,
nor is the premium that employers can charge. The law doesn't apply
to federal employee plans or plans that are self-funded by an
employer.
Colorado State Sen. Brandon Shaffer, who co-sponsored the law, said
the target population was part-time students and young working
adults who still rely on their parents for financial support. Nearly
40% of the state's uninsured were 18 to 34 years old in 2004,
according to the Colorado Health Institute, an independent research
group. The figure is in line with the national average.
The New Jersey law provides for dependents to be covered up to the
age of 30, but allows insurers to charge a separate premium for
these older dependents. State Assemblyman Neil Cohen, who sponsored
the bill, estimates the additional coverage could cost an average
family between $2,500 and $3,000 a year, well below the roughly
$7,000 cost of an individual policy in the state. Some critics say
his cost estimate is unrealistically low. Mr. Cohen said he expects
100,000 to 200,000 young people would find coverage under the new
law.
Several states are considering similar bills. A Rhode Island bill
would phase in coverage of older dependent children over several
years, raising the age limit to 21 in 2007, 23 in 2008, and 25 as of
2009. Dependents would have to be unmarried and financially
dependent to qualify, but they wouldn't have to be enrolled in
higher education. In Massachusetts, a bill awaiting the governor's
signature states that dependents are eligible for coverage until
their 25th birthday, or two years after their parents no longer
claim them on their tax returns, whichever comes first. The bill is
part of a comprehensive health-insurance package that requires every
individual in the state to obtain coverage.
Some states' legislation is narrowly crafted to address specific
problems. In New Hampshire, a bill would require insurers to
continue coverage for full-time students who have to take a medical
leave of absence due to illness or injury. A Pennsylvania law
enacted last year states that full-time students whose studies were
interrupted by National Guard or armed-forces reserve duty must be
allowed extended health-care benefits until they finish school,
regardless of their age.
At least four states, including New York and Minnesota, currently
require health plans to cover grandchildren if they are financially
supported by the grandparent or are in their legal custody. In
Texas, a grandchild who is a legal dependent must be covered until
his 25th birthday as long as he or she remains unmarried. Coverage
can't be terminated even if the child is no longer a dependent for
tax purposes, according to the National Conference of State
Legislatures.
To determine if extended dependent coverage is the best choice,
parents should compare it against an individual health-care policy
or the federally mandated Consolidated Omnibus Budget Reconciliation
Act, or Cobra. Adult children are allowed to sign up for Cobra when
their eligibility ends under their family's plan. Cobra is most
often used to provide continuing health-care coverage when an
employee leaves his or her job. Under Cobra, continuing group
coverage is available for a maximum 36 months, but requires the
individual to pay the full premium cost under the health plan plus
an administrative fee of 2%. In 2005, the average annual premium for
individual coverage under a group policy was $4,024, according to a
national survey.
