According to a report in Kaiser Health News, to date in 2011 600,000 adult children have enrolled in their parents health insurance with most of the enrollment coming in employer self funded plans. At this rate it is estimated that the original projection for enrollment of 1.2 million is too low.
Come 2014 employers will lose the ability to decline enrollment if the child has other coverage available through his or her employer. At that point employers offering the best coverage at the lowest cost will become the target for adverse selection as adult children seek the best deal.
Remember, children do not have to be dependent on the employee (many employers have not updated plan language to reflect this), can be married, employed and do not have to live at home. So, the 25-year-old making $150,000 a year on Wall Street can enroll in her parents plan, possibly for free if the parent is carrying family coverage, and avoid the few hundred dollars a month that she may be required to pay for her employers coverage. (another Wall Street bail out?)
And of course, she is eligible for all the “free” wellness and preventive services required under the law thereby compounding the additional cost to the parents plan.