Though many insurers have implemented the law early, which states adult dependents may remain on their parent’s plan until the age of 26, there have been a surprising number of employers who opted out of the earlier implementation of this law. Instead, they are waiting until they are legally required to do so – January 2011. Even though provisions of this law take effect September 23, 2010, employers do not have to comply with this until the New Year.
The imbalance comes in the fact that insurance companies will reap the benefits of higher premiums and revenues, while employers are footing the higher costs out of their pockets. As a result, many employers stated that they may require proof that these overage dependents are not qualified for alternate employer coverage (which makes them ineligible for this extended coverage, as the law says that adult children who are working and have an offer of coverage from their employer can’t stay on their parents’ plan), or increasing the employee’s portion of premium contributions for their dependent coverage. At the same time employees fear this means the new law really won’t make it any easier to keep their adult children covered, employers are scrambling to comply with the new laws, while keeping out of pocket expenses to a minimum.
Tags: children's health, health insurance, individual health
