The Departments of Health and Human Services, Labor and Treasury issued the Interim Final Rules for Group Health Plans and Health Insurance Issuers relating to Dependent Coverage of Children to Age 26. This is what you need to know today.
Under the Patient Protection and Affordable Care Act, group health plans that offer dependent coverage for children are required to do so up to the age of 26. Coverage extension applies to plans that begin on or after September 23, 2010. For calendar year plans, the extension must be in place by January 1, 2011.
Along with the change in age, the new law only allows two eligibility requirements:
- Relationship between the participant and child. The definition of ‘child’ is not defined by the regulations. Therefore, plans will continue to define which children will be covered.
- Age of child – mandates coverage until the child attains age 26.
- Review current plan to determine compliance.
- Communicate with vested parties regarding changes and dates.
- Assess whether plan contribution needs to change (refer to regulations).
- One-time Special Enrollment Notification – 30 day window.
- Amend plan documents.
- Communicate plan changes to participants.
Compliance requirements and guidance from the various government agencies, along with updates from insurance carriers is continuous. Why not consider utilizing the Employee Benefits Management experts of a Small Business PEO to assist. Management 2000 offers PEO Services. Put our Benefits Plan Administration Team to work for you, so you can run a business.
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