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| Posted on: Monday, July 18, 2005 |
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Employers who have a fully-insured health plan must comply with a new Colorado State mandate that will allow more young adults to be covered by their parents’ group health insurance policy. Effective January 1, 2006 HB 05-1101, Dependent Health Coverage for Persons Under the Age of 25 Years raises the age limits of dependents who can qualify as a dependent under their parents’ group health insurance. The dependent’s maximum age has been increased to be under 25 and the requirement that an unmarried adult between 19-23 be a full-time student has been eliminated. Coverage is available if the dependent has the same legal residence as the parent or is financially dependent upon the parent.
In Colorado, young adults in the 19-24 age group have one of the highest rates of being without medical insurance. This group, traditionally new to the job market, has high unemployment rates, find health coverage too expensive to purchase, or are employed in jobs that do not offer health insurance. The employer can charge the employee an additional premium to accommodate the dependent. Whether the insurance carrier will require a distinct premium increase or build the added cost into normal renewal increase will vary by carrier. Insurance carriers are confident they will be ready to administer the new law on January 1, 2006, and will be working with employers to alter plan documents to reflect the definition change of a dependent.
As the uninsured and underinsured continue to look to the State for medical coverage, the State will continue to look for ways to shift costs for that coverage to others. In this case. the shift is via higher group insurance rates rather than a politically difficult, explicit tax increase.
For more information please visit the Governor’s Website.
Should you have any additional employee benefit questions or would like to discuss this material in detail, please don’t hesitate to call the Denman Team. |
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