Healthcare

Big changes in dependent coverage as adult children remain in employer health plans

See latest post on this topic dated March 1, 2012

In recent years, employers have embraced the idea of dependent audits in an attempt to ferret out ineligible dependent children from health benefit plans. Most plans cover dependent children to age 19 and age 23 or 25 if the child is dependent and a full-time student.  Under the new health care law, that is all out the window and hundreds of thousands, perhaps millions of adult children are now eligible to be enrolled in their parents health plan.  In fact, in many cases there will be a strong incentive for the child to remain on the parents plan.

It does not matter if the child is a dependent, if the child is attending college or even if the child is married.  The only exception for group plans is if the child is eligible to enroll in another employer’s coverage (but only for plan years beginning before January, 2014).  The Senate bill required the child to be unmarried but the reconciliation bill removes that language.  The law also contemplates employer contributions because there is a clear statement that such contributions will be included as income to the child unless he or she is a dependent of the employee.  However, it appears that the intent for this employer contribution not to be imputed income and changes are being made in the Reconciliation legislation. Generally speaking, the intent was to cover these children just as any younger child is covered under the employer plan.

For group health plans this change can be significant as new children come under plan coverage.  Employers who recently audited such coverage may be required to notify their employees that dropped children can be reinstated as of January 1, 2011.  In order to avoid what may be a financial hardship for workers employers may want to consider initiating this process in advance of 2011.  In addition, this will change the scope of COBRA as previously COBRA beneficiaries are returned to the active group.

These provisions are effective for plan years that begin after six months from enactment of the law – January 1, 2011 for most employer plans.

As usual, all sections of the legislation will be subject to new regulations and employers can expect millions of pages of those over the next several years. 

Senate Bill 

‘‘SEC. 2714. EXTENSION OF DEPENDENT COVERAGE. 

(a) IN GENERAL.—A group health plan and a health insurance issuer offering group or individual health insurance coverage that provides dependent coverage of children shall continue to make such coverage available for an adult child (who is not married) until the child turns 26 years of age. Nothing in this section shall require a health plan or a health insurance issuer described in the preceding sentence to make coverage available for a child of a child receiving dependent coverage.

Reconciliation Act

‘‘(ii) ADULT DEPENDENT COVERAGE.—For plan years beginning before January 1, 2014, the provisions of section 2714 of the Public Health Service Act (as added by this subtitle) shall apply in the case of an adult dependent with respect to a grandfathered health plan that is a group health plan only if such dependent is not eligible to enroll in an eligible employer-sponsored health plan (as defined in section 5000A(f)(2) of the Internal Revenue Code of 1986) other than such grandfathered health plan.’’.

(b) CLARIFICATION REGARDING DEPENDENT COVERAGE.—Section 2714(a) of the Public Health Service Act, as added by section 1001(5) of the Patient Protection and Affordable Care Act, is amended by striking ‘‘(who is not married)’’.

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77 replies »

  1. My step-son is 20, getting married next week, and is in the National Guard Reserve. He is currently covered under my husband’s insurance. We understand that he can remain covered even after he gets married, but his spouse will not be covered. He told us that they are going to be looking into getting Tricare coverage through the military. My question is since he is under 26, will he have to remain on my husband’s coverage and use it as a secondary once he gets Tricare as his primary coverage? Or, does he just drop my husband’s coverage once he has coverage of his own? Not sure if one replaces the other or if it becomes coordinated benefits. Thank you for your time.

    Like

    • There is no reason to keep him on your husbands coverage once he is actually enrolled in his own insurance. However, I am not sure TRICARE is for part-time reservists.

      >

      Like

  2. I usually do not drop a lot of responses, but i did some searching
    and wound up here Big changes in dependent coverage
    as adult children remain in employer health plans | quinnscommentary.
    And I actually do have 2 questions for you if you tend not to mind.

    Is it just me or does it appear like a few of these responses come across like
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    are writing at other sites, I’d like to follow anything new you have to post.

    Could you list of all of your community sites like your twitter feed, Facebook
    page or linkedin profile?

    Like

    • My twitter and Linkedin sites have the same info as this site. My other site is Health Insurance Illuminated. The link to that site is in the right column o this blog.

      Like

  3. I was wondering if you ever thought of changing the page layout of your blog?

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    But maybe you could a little more in the way of content so
    people could connect with it better. Youve got an awful lot of text for only having one or two pictures.
    Maybe you could space it out better?

    Like

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    Like

  5. First of all I want to say wonderful blog! I had a
    quick question which I’d like to ask if you don’t mind.
    I was interested to know how you center yourself and clear your head before writing.
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    Like

    • Quite possibly if you are under age 26. However, your wife can’t be covered under your parents coverage, she would have to be covered under her parents. In addition, before 2014 the plan can deny coverage if you are employed and have your own coverage available. Beginning in 2014 they can’t deny coverage even if you are employed with other coverage.

      Like

  6. Are parents of adult children under 26 REQUIRED to provide coverage for their non-dependent children? In other words does a parent have to choose a higher cost family plan for their child rather than a lower cost single plan? My employer provides employee-only health coverage free of charge. But premiums for the optional family plan is extremely expensive. Am I required to purchase family coverage to insure my 25 year old child if he does not qualify for coverage with his employer? He is married, a student and doesn’t have insurance coverage at his job.

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  7. I have a question, since “nothing in this section shall require a health plan or a health insurance issuer described in the preceding sentence to make coverage available for a child of a child receiving dependent coverage.”, my father is covered under Union (Horizon Blue Cross Blue Shield) in New Jersey, I am turning 23 in April and I still live with my parents, my insurance states that I need to be enrolled in the plan before 1/1/2011, i was kicked out of my fathers insurance from estimated 2009/2010 DUE to one semester i was a part-time student when i was required to be a full-time college student.

    Since it is Union, does Union insurance can be ignored with the obamacare? Do they have the right not to include me under my father’s coverage? If the insurance still declines my enrollment, should I bring this matter to court?

    I have not spoke with the insurance agent yet as one of my co-worker pointed out that he never attended college and he is enrolled in his parents health coverage (not sure what kind of health insurance he has). I decided to do some research, and it says “IN GENERAL” under the obamacare, so that means “”nothing in this section shall require a health plan or a health insurance issuer described in the preceding sentence to make coverage available for a child of a child receiving dependent coverage.”

    Basically, that GOVERNMENT quotation pretty much stomps the Union’s insurance “requirement”. Am I correct?

    I am 22 years old, 30-hr job weekly, full time college student, unmarried, US citizen

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    • I think you may be confusing two separate things. The reference you quote is talking about the child of a child meaning your fathers grandchild which does not have to be covered under a health plan, union or otherwise.

      When Obamacare passed it required that a child be covered until age 26 regardless of dependent status. The only exception was if the child was working and had other coverage available. However, that limitation expires in 2014. So you could be covered under your parents plan even if you were employed, married and not a student.

      However, health plans provided for an initial open enrollment period after the law was passed and then most have an annual enrollment period. If you failed to enroll during one of those periods, you will likely have to wait until the enrollment period for 2014.

      Your father should check with the plan administrator for information on the open enrollment.

      Like

  8. 1/9/2013 – Everything I’ve read states that my employer purchased healthcare must allow my young adult daughter to be covered under my plan, regardless of student status (as of 1/1/2011).
    Yet on 12/14/2012 my “benefits” department clearly stated:
    “A child who is 19 years of age is eligible for benefits however you need to submit proof of full time student after 19 years so that the dependent can be added.”

    She turns 19 next month and is currently taking a break from school after brain surgey. She can not afford to be without insurance.

    Am I missing something here?!?

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    • I don’t think you are missing anything. I cannot think of any reason your daughter cannot continue to be enrolled. She does not have to be a student, does not even have to be dependent on you for support, and can also be married. You should question your employer. Perhaps they simply failed to update the material. Just as an aside, grandfathered plans are not exempt from this provision.

      Like

    • I know of no plan that would permit that age child on your plan. However, if the child is disabled that may be different, but usually the child must be disabled at the time she would otherwise loose coverage because of age.

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  9. i mised open enrollment, now my insurance wont let me drop my adult children. ( one is in the military one is married with own insurance) what can i do?

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    • Well, if they take a position that no changes can be made except during enrollment periods there is not too much you can do.

      Did the events that made it not necessary for you to cover them occur between the last open enrollment and the most recent one? In other words, could you have dropped them because of a specific event before this enrollment period started?

      By dropping them would you go from family coverage to say husband and wife coverage so that your premiums would be lower or do you have other covered children so the premium does not change in any case?

      Finally, is this an employer based group plan? If so, appeal to your employer who may be paying unnecessary premiums.

      If this is an individual insurance plan and by taking off these two children your premiums would be lower, first appeal to the insurance company and if that does not work, write to your state insurance commission.

      If it is the case that you are being for forced to pay higher premiums for coverage you don’t need and can’t use, base your appeals on that fact.

      Like

  10. My 20 year-old son neither works nor attends school. If I carry him on my health (or dental) insurance, is this at all considered taxable income to either of us. (I am a Wisconsin resident). Thank you

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  11. I have two questions really. The first is how do you define employee insurance plan. I’ve been reading and seen cases were the “dependents” were offered insurance through their employers and you said they could be on the parents. At other times you said they could be on the employers insurance “as long as they don’t have other employer coverage available.” Something seems contradictory here.

    If you are a full time employee and your company offers an insurance plan (good, bad or otherwise) but are 26 or under can you say oh hell, I want more money in my check so I’ll have mommy and daddy take care of my insurance for a while longer.

    The second question is this is you are a married young woman and your spouse has an insurance plan (good bad or otherwise) can you still say “Oh hell, I’ll stay on my mommy and daddy’s insurance so we get more money.

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    • Today an adult child under age 26 can be excluded from their parent’s coverage if the child has coverage available through his or her own employer. However, beginning with plan years effective January 1, 2014 adult children with their own employer coverage cannot be excluded from the parent’s coverage even if they are married.

      Better check the plan year effective date with the employers involved. P

      Like

      • I just got married two weeks ago. My mom’s insurance said they will not cover a married child. Can they do that? I been facing a lot of difficulties with my health care, my school said they’ve never heard of such a thing and they won’t validate my student id unless I pay them 1200$ a semester for their healthcare. I really need some answers. Thank you.

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      • If you are under age 26 your mothers coverage should allow you to enroll. However, if you were not previously enrolled in your mothers coverage there may be limited open enrollment periods. Your mother needs to get an explanation of why the coverage thinks they can exclude you.

        Print out the regulations that I posted on this blog.

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  12. rdquinn…you seem very knowledgeable about insurance if i am under my parents insurance from horizon blue cross/shield, NJ, i am 26 turning 27 just finished my doctorate and got married. does the marriage null the insurance coverage…i know we have the new rider in NJ up to 30 but the question is, does getting married cancel my ability to be insured under my parents?/? thank you for your time

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  13. I want to marry my boyfriend before i graduate high school. I am currently under my dad’s health insurance but my boyfriend is in the military. my question is if i get married since im 18 will i be kicked off of my parents insurance cause i really dont want them to know for atleast a year or so.

    Like

    • Being married does not disqualify you from your parents health insurance under Obamacare.

      But you have a bigger issue to really worry about. Why in the world would want to get married while in school or when you are 18? Big mistake, big, big mistake and you know it or otherwise you wouldn’t want to keep it a secret. Take it from someone who has been there including having a first date with the women I’ve been married to for 44 years two months before I went into the army … Wait! Anything that is real will last and there is no rush no matter what.

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  14. I have three step children that don’t live with my husband and I. They are all under 26. Our insurance will keep them on until they reach 21 or 23 if they are in school. After that they can get on a separate child plan for $201 a month per child. My question is, Does my husband have to add them back to our insurance? Or do the kids have the option to pay for their own insurance coverage?

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    • Under Obamacare your insurance should be allowing these children to stay on your coverage to age 26 regardless of student or dependent status. If they are currently on your coverage they can stay enrolled with no additional cost to your premiums. If for some reason you have dropped them from your coverage, you need to re-enroll but your employer or insurer can set rules for doing so, like specific time periods to do so.

      You need to seek specifics from your insurer or employer.

      Dick

      Richard D Quinn Editor

      Visit these blogs:

      Quinnscommentary.com

      Health Insurance Illuminated http://blog.horizonblue.com/

      Like

  15. My daughter is going graduate college in May 2012. She will employed in June of 2012 with medical benefits. Is my daughter still covered under my insurance as the secondary medical insurance

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    • Probably not. Employers and insurers can exclude children who are employed with health insurance available (until 2014). Of course the child still has to be under age 26 in any case. The only way to know for sure is to contact your plan and see what permitted exclusions it is using. If you are talking about a summer job that ends in the fall, you MAY be eligible to re-enroll your daughter when the job ends. Again, check with your plan.

      Dick

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  16. My son was put from full time to part-time. Because of this he isn’t eligible for insurance coverage. I called to put him back on his father’s insurance but they said we had to claim him on our 2011 taxes or he wasn’t eligible. He is a full time student but also was making his own money so filed his own tax return. We thought we were doing right but now can’t put him on his father’s insurance.

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    • The information you received appears incorrect. Your child does not have to be dependent upon you, can be married and does not have to reside with you.

      In fact, even before the new law what you describe would generally not disqualify a child.

      Dick

      Richard D Quinn Editor Quinnscommentary.com

      Like

      • This is the second time I called and they told me the same thing. They said if we put him on his father’s insurance they would audit our tax return and if he was not on as a dependent he would be disqualified and dropped immediately. Thank you for this information.

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    • Ask your employer why they are not in compliance with PPACA and show them the following.

      “The health reform law contains a provision that requires private insurers to continue dependent coverage of children until age 26. Department of Health and Human Services regulations specify that a young adult can qualify for this coverage even if he or she is no longer living with a parent, is not a dependent on a parent’s tax return, or is no longer a student. Both married and unmarried young adults can qualify for the dependent coverage extension, although that coverage does not extend to a young adult’s spouse or children. For employer plans that were in place prior to March 23, 2010, young adults can only qualify for dependent if they are not eligible for another employer-sponsored insurance plan. Insurers that do not offer coverage to dependent children will not be required to offer this coverage to young adults.The extension of dependent coverage to age 26 will go into effect on September 23, 2010, but plans will not be required to comply with the regulations until the first plan year beginning on or after that date. However, some insurers have said that they will begin to make the extension of dependent coverage available prior to September 2010 for young adults who would otherwise lose coverage. Regulations also state that young adults who gain dependent coverage under the health reform law cannot be charged more for coverage than similar individuals who did not lose coverage due to the end of their dependent status. Young adults newly qualifying as dependents under the health reform law must also be offered the same benefits package as similar individuals who were already covered as dependents.Currently, some states require that private insurance extend coverage to young adults in their twenties. These state requirements do not extend to self-funded insurance plans, but the new federal health reform law is designed to apply to these self-funded plans.

      >

      > New comment on your post “Big changes in dependent coverage as adult children remain in employer health plans” > Author : robin pickett (IP: 216.228.91.10 , static-216-228-91-10.apid.com) > E-mail : pckt1960@yahoo.com > URL : > Whois : http://whois.arin.net/rest/ip/216.228.91.10

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  17. I am curious to know if you have an adult child on your medical insurance and they rack up a bunch of medical bills would the holder of the insurance (parent) still legally owe the balance of the bills? I would like to add my adult child but I am afraid I would end up paying all her bills. I’m not sure there is some form I could have her fill out that she is the responsible party or if legally I would be responsible? Any advice would be greatly appreciated…

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    • I am no lawyer so you may want to seek professional advice, but it seems to me that if you are not responsible for your adult child’s credit card bills for example then you would not be responsible for other bills either. The patient is resposnbile for medical bills unless they are minor children. But again, you should check. I would be more worried about outstanding liabilities if the adult child had no insurance.

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    • You would not be responsible for the bills. If she is 18 or older she is considered her own guarentor. It’s only if someone is a minor that the guarentor is responsible for any and all medical bills. All bills should be in her name as the guarentor and she is responsible to pay them, not you.

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  18. Hello. My daughter will turn 19 in 2 weeks. We were just notified by our insurance company that they were dropping her on her birthday. The reason….she has a job and that job provides insurance. I told them she only works 10hrs a week….they said it didn’t matter if it was 2 hrs or 40 hours. She works at McD’s and goes to college full time. Another big blow….she has braces that she got 1 yr ago. The insurance only pays a small amount every month. (they wouldn’t pay in full) There is still over 500 owed on the braces from the insurance…….I was told by the insurance company….they would cancel on her birthday and make no more payments. UGHH

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    • If you still provide her support while in college generally meaning you are able to claim her as a dependent for tax purposes (even if you don’t actually claim her because she claims herself), I would challenge that decision by your insurer.

      Dick

      Richard D Quinn Editor Quinnscommentary.com

      Like

    • Is this Dental insurance ? I don’t think that dental insurance is subject to the health insurance reform regulations – only medical insurance.

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    • I think you should appeal this. As long as you would be eligible to claim her on your income tax as a dependent, the child is genrally deemed to be dependent on you for support even if you don’t actually claim the child for income tax purposes becasue the child does so herself.

      On the other hand if she has insurnace avialable that is a probloem under the new law. Is the 10 hour a week job worth losing the coverage?

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  19. Step-daughter was on father’s health plan. She is 23 years of age, graduated from college 12/09. Dropped off of father’s insurance 6/10. Father retired from military, went to work as civililan for the Army and continued same health insurance. Retired again 7/10, Health coverage is now considerd a benefit and told cannot put daughter back on insurance. Step-father never had her on on his plan, can he now enroll her on his plan?

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  20. I have a question.

    Our two youngest sons are both under 26 and both have healthcare at work. Neither plan is worth the paper its written on compared to ours. Our employer is allowing us to add the both of them back to our plan. One son has his open enrollment period the same time we do, November 2010, so he simply declined coverage at work. The other son, his open enrollment is not until May 2011. His insurance is $57 dollars a week, he makes $8 an hour. On our plan, BOTH kids cost $43 twice a month total. His employer has told us that he cannot be dropped from their plan until open enrollment unless he loses his job, gets married, or has some other “status” chagning event. Since it cost no more to keep one son on than to keep two, we will keep him on ours even though his employer will not let him drop his until May. Is this correct? Is there no way to drop him from his employers plan on January 1, 2011? Affordable healthcare is not affordable when you gross 320 a week and have to pay taxes and $57 for your health plan.

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    • That may be the case if your sons plan is a pre-tax Section 125 plan where his premiums are pre-tax. Changes mid year can only be made for qualifying events. It’s federal law.

      There is nothing in the new law that makes health care affordable, quite the opposite in fact. Subsidizing something that is unaffordable does not make it affordable, just paid for by someone else.

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  21. What exception is there for collective bargaining agreements? Our Union is telling us that open enrollment for dependents will not take place for over 2 years because of an agreement they singned in 2009. How can that be?

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    • I am not aware of any such delay for union plans or collectively bargained plans. I searched the regulations for the words “represented”, collectively bargained, and “union” and they are not mentioned at all let alone for any exception.

      The coverage must be offered to be effective with the first plan year beginning after September 23, 2010. You should ask your union representative to cite the law or regulations they are relying on for such a delay.

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  22. My grandson, who lives with me, has a part-time job at McDonald’s. He is 22. He usually gets from 20 to 25 hours a week at his job, and is trying to find other work. He could buy McDonald’s mini-med plan, but can’t afford it. His mother used to carry him on her plan, which is a great local municipality plan, but she doesn’t want to, even though she has a family plan that covers dependents. Does she have to cover him? She is afraid they will want to fire her if she adds him to the plan because it will cost the Borough more money. Can they retaliate against her if she does. The plan at McDonald’s is really bad.

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    • Two things to keep in mind. Your daughters employer is not going to retaliate if she enrolls an eligible adult child in her plan. In fact, employers have to provide an open enrollment period just for that purpose. HOWEVER, until 2014 employers do not have to enroll an adult child if that child is employed and has health coverage available. Whether a part-time worker eligible for a mini-med can be excluded I am not 100% sure.

      Your daughter should absolutely talk to her employer about enrolling her son. Give the employer all the facts and find out the employers position.

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  23. Need advise –
    situation – 23 yr old son, graduated from college in May, taken off my coverage June 1 and purchased COBRA. He has a pre-existing condition so was unable to purchase individual coverage and had to take COBRA.
    He is recently employed and is eligible for health insurance through his employer on 12/1/2010. Have paid Cobra bill for November. Have been advised that he is eligible to come back on my policy on 1/1/2011.
    I have so many questions –
    1) should he take his own coverage?
    2) can he stay on Cobra for December and just come back on mine in January?

    With his pre-exisiting problems, have been hit with significant out of pocket costs. Just trying to figure out what is the best way to go.
    Thanks

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    • First, you need to be sure of what both employers are doing.

      However, as soon as your son is covered for benefits from his employer he is not eligible for COBRA or to enroll in your coverage as an adult child so I suspect his only option is to enroll in his employer coverage as soon as it is possible.

      Check with your employer coverage for the rules they apply to COBRA beneficiaries who become employed with benefits available to them. And be sure they follow the new rule that until 2014 employers can deny coverage for an adult child who has other employer coverage available to them.

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  24. I own a small Sub S corp and provide full health care benefits to all my full time my employees. My 23 y/o daughter has joined my company full time from another employer where she had health coverage. Is she eligible to be a dependant on my policy or do I have to provide her a separate policy?

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  25. If my under 26 daughter who was removed from my employer-based health care insurance has the opportunity to enroll in her own employer’s health care insurance but cannot afford to do so, is she still ineligible to be enrolled back into my employer-based health insurance? Does the words, “Affordable Care Act” mean something here? Thanks!

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  26. My daughter is 22 years old. She is currently, as a full-time student, under my wife’s plan that ends June 30, 2010. She won’t be a full-time student next year. When will she be covered by the new plan that begins July 1, 2010? Will that be sometime in September? Or will she have to wait until July 1, 2011 to be covered?

    Like

    • That depends on your employer. The law is effective the first plan year that begins following sic months after the law was enacted. The six months is Sep 23 so for most plans the next calendar year will start Jan 1,2011. Many insurance companies and some employers are accelerating the effective date voluntarily
      to June 1.

      You may have to use COBRA until Jan 11. Best to check with your employer to see it’s intent as to timing.

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  27. My 22 y/o daughter is getting married in June. I was going to move her to COBRA on July 1 because of this.
    Does the new health care regulation allow me to move her back to my current family plan on July 1, 2011 or even Not roll her to COBRA at all? or…does her possibly not meeting the IRS definition of a dependant: possibly filing a future joint tax return with her future spouse, etc disqualify her…or does the new health care regulation allow this (trump the IRS)??
    She will not have employer coverage options .

    Thank you, David Agoff 530-893-6650

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    • First, there is no requirement that your daughter be dependent on you. So at some point you can enroll her under your coverage. However, the effective date depends on your plan. The earliest effective date required is the first plan year that begins following six months after the legislation was signed into law. In most cases plans are on a calendar year so the date would be January 1, 2011. There may be a further delay for collectively bargained plans.

      Many insurance companies are accelerating this date so you need to check with your employer.

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  28. My company says that they are “grandfathered” in and won’t have to abide by the new law because they have an existing plan in place. Has anyone heard of this?

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    • The grandfathering does not apply to the provision related to children or certain other provisions of the law. The dependent provisions are effective with the first plan year beginning after six months following enactment of the law. usually 1/1/11. Before 2014 children eligible for another employer plan are not eligible for coverage under the parents plan.

      The possible exception is a collectively bargained plan where this provision may not apply before the expiration of the collective bargaining agreement.

      Like

  29. Minnesota law said that “self insured plans” are exempt from continuing coverage for non-student dependents over 18.
    Will that same exclusion apply to the new Federal Law providing coverage to age 25/26?

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    • Self insured plans are exempt from state insurance laws, but are subject to federal law including this law and the requirement to continue coverage until age 26 for children.

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  30. The IRS is working on regulations on this, but I suspect the change in reporting imputed income will be consistent with the change in your plan under federal law which would be the first plan year that begins after six months following enactment of the law. We will have to see the final release from the IRS.

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  31. I have the same question as Mr. Quinn. The law provides for the under 26 year old to be put on my health insurance 6 months after signing, that would be 9/2010, not 1/2011, I work for the Federal gov’t and I believe OPM is using the 1/2011 to benefit the Fed insurance companies. When is the official effective date?

    Like

    • The effective date of the change is the first plan year beginning after six months following enactment of the law. In most cases that will be Jan 1, 2011

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  32. I’m an employer in a state where we already have to cover these overage dependents. We have had to impute income to their parents for the value of this coverage. Also, they could not pay their premiums thru our Sec. 125 Plan.

    The Reconciliation bill apparently changed the definition of dependents in IRC Sect. 105(b)so that this coverage is no longer taxable. Is that effective immediately ? Do we stop the imputed income immediately ?
    Thanks.

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  33. So what is the bottom line here – a plan that provides dependent coverage is only required to provide coverage to children under age 27 if the plan provides dependent coverage and the child under age 27 is a dependent? That’s the most logical interpretation although the bill language is somewhat ambiguous….

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    • This has nothing to do with a child being dependent, they don’t have to bevdependent, can be married and employed ( as long as they don’t have other employer coverage available. By the other employer coverage goes away in 2014 and then they can simply take the best employer deal.

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  34. I have been trying to confirm the requirements for “adult children” to remain on their parent’s health insurance policy.

    CNN reported this morning through Dr. Gupta that children must be a dependent in order to receive benefits.

    Currently my group health insurance allows children to remain on parent’s policy as long as they are full time students OR a dependent on the parent’s tax return. As my son recently completed college and has a part time job he no longer qualifies as a dependent because he makes $10,000 a year.
    However, he is not qualified for health insurance through his employers.

    Will he still be able to be covered under my insurance at work with the Health Care Reform.
    Can you please site the section in the bill where this is documented?

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  35. Mr. Quinn,

    My dad (Lou) passed this info on to me and I appreciate it. I have a son graduating from college in May who is 22 who may not find a job with benefits any time soon. So imagine my delight when I found out that “Obamacare” works to our advantage in keeping him on my medical plan (or reinstating him at least).

    I have 2 questions:
    Everything I have read up to this point says that the dependent care part of the legislation takes effect 6 months after the President signs the bill, putting the effective date at late September, 2010, not January 2011.

    In order to qualify for reinstating him on my medical plan, should I pay for COBRA coverage as soon as eligible or can we get a (cheaper) temporary individual plan for the few months prior to his reinstatement? I suppose if I use COBRA, he is never technically “off” of my plan. Do you think this will make a difference?

    Can you comment on these please. Thank you.

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    • This part of the law is effective the first plan year that begins after six months following enactment. If you plan years begins on Nov 1 it would be effective then, but most plans are on a calendar year basis.

      I would stick with COBRA to avoid confusion later and it should be easier to just get back on your coverage from the COBRA. Regulations has to be oases on how this will all work. While the intent on Congress was to have the child like any other dependent, that is employee does not have to pay extra for this child, the law is silent on that point. Of course, there is no benefit if they are not included as that is just back to COBRA again. Hope this helps.

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