Memo on Health Insurance Coverage to Age 26
Date: June 2, 2010
To: All Benefits-Eligible UVM Faculty and Staff Members
From: Barbara L. Johnson, Associate Vice President, Human Resource Services
Re: Health Insurance Coverage for Adult Children to Age 26
The Health Care Reform Act signed into law in March, 2010, includes a provision that requires employers to allow adult children to be covered by their parent’s health insurance until they reach age 26. While we do not yet know all of the details of this new program, the initial guidance includes the following information:
- The new law requires that extended coverage of adult children to age 26 must be provided by the employer’s group health insurance plan at its first health plan renewal date after September 23, 2010.
- Instead of waiting until July 1, 2011, UVM will comply with the requirement by conducting a special enrollment for eligible adult children for coverage effective October 1, 2010. We will develop and announce an enrollment process in advance of that effective date.
- Blue Cross-Blue Shield of Vermont and MVP Health Care are among insurance carriers who have agreed to continue coverage of adult children currently on UVM health plans who would have “aged out” of coverage prior to our special enrollment date.
- Children who would have been covered by their UVM parent’s plan will be allowed to continue coverage uninterrupted, effective retroactive to April 1, 2010. Employees who choose to continue covering these dependents will be required to pay the applicable family premium rate. Eligible children not currently covered by their parent’s plan will have the opportunity to enroll during the special enrollment period.
While the definition of “dependents” has not yet been fully developed, we do know:
- They will no longer be required to be full time students.
- Dependents of dependents (spouse and children of adult children) will not be eligible for plan coverage.
We will keep the UVM benefits-eligible community informed as we learn more about the provisions of the Health Care Reform Act and how they will affect the UVM plans. Please contact the HRS Information Center if you have questions or concerns.
Link to memo of July 13, 2010