The new health reform law, also known as the Patient Protection and Affordable Care Act (PPACA), will make big changes to how millions of U.S. residents receive their health benefits.
“One change that has received a lot of attention is a new requirement for health insurers and group health plans to allow dependents up to age 26 to remain on their parents’ health plans,” says David Crosby, regional president of HealthAmerica. “Under the PPACA, this new requirement takes effect for plan benefit years that start on or after Sept. 23, 2010.”
Smart Business spoke with Crosby about several aspects of health care reform, including the decision by many health insurers to begin coverage of dependents up to age 26 in advance of the law’s requirement.
How can a company determine if its insurer will offer dependent coverage immediately?
If your insurer hasn’t contacted you, call your account manager or broker to find out what its plans are regarding this coverage. Also, while many insurers have already begun dependent coverage for fully insured plans, self-funded plans may be handled differently.
Self-insured employers can decide if they want to wait until the provision becomes effective on Sept. 23. If you haven’t already, now is the time to create a direct line to your insurer for information about the new health care provisions because there are many more changes ahead.
Do employees have to do anything regarding the changes in the law?
To get specific information about their coverage, they should watch for updates and communication funneled through you, as most of the information will come from the insurer through their employer.
Some consumers are interested in educating themselves as the regulations unfold, and there are plenty of news sources and government Web sites that have more information available. Many insurers are also providing information on their Web sites that employees can access.
Why are some insurers offering this coverage earlier than required to do so by law?
Many insurers know the importance of maintaining continuous affordable health coverage for young adults and people of all ages. Moving up the timetable makes good sense for everyone. It is also a way for a health plan to provide assurance to parents that their children will continue to receive high-quality health care at an affordable cost.
