Rules for Adult Dependent Coverage under PPACA now available

The Department of Labor has released proposed rules to implement the requirement under PPACA to enroll adult dependent children to age 26.

Here are a few highlights of those rules:

  • There can be no limitations based on an individual’s residence, income, location, whether they’re married, etc.
  • These individuals cannot be charged (or account for charges) more than other dependents.
  • They need not have been enrolled in the plan in the past; they must be allowed on.
  • If adult children are on COBRA, they must be allowed to drop COBRA and be enrolled as dependents. And then when they hit age 26, they must be offered COBRA again.
  • There will have to be special enrollments, so they will be able to get on a plan in mid-year.

 A very important question for many people, both employers and employees was if the employer could charge more for these children,  the answer is a clear no.

Here is what the DOL Questions and Answers say about that.

Q: Will young adults have to pay more for coverage or accept a different benefit package?

A: Any qualified individual must be offered all of the benefit packages available to children who did not lose coverage because of loss of dependent status. The qualified young adult cannot be required to pay more for coverage than similarly situated individuals who did not lose coverage due to the loss of dependent status.


Categories: Healthcare

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