Pennsylvania lawmakers recently passed legislation that would allow qualifying children 29 or younger to obtain healthcare coverage under their parent’s group healthcare plan. In order to qualify, the child must meet the following requirements:

• Single
• Have no dependents
• Be a resident of Pennsylvania or enrolled as a full-time student at an institution of higher education
• Have no coverage under another health insurance policy

Governor Ed Rendell is expected to sign the bill. Pennsylvania would join at least 19 other states that have increased the age of dependency for young adults.

WHAT THIS MEANS TO YOU AS AN EMPLOYER?
The law will apply to new contracts and renewals occurring 180 days after signing, and then on a rolling basis as non-ERISA (Employee Retirement Income Security Act) contracts are made or renewed. If Governor Rendell signs the bill before the end of June, the provision would apply when a policy is issued or renewed in January 2010. Employers that provide group health coverage would not be required to extend benefits to adult children. However, if an employer wishes to grant this option to their employees they would not be required to contribute to any premium increase that resulted, but could agree to do so.

Employers with self insured benefit programs would be exempt because of a provision in ERISA that pre-empts state laws or rules that relate to employee benefit plans.

The employee has to pay the cost of adding the dependent child to their coverage and any increases in premium.

WHAT SHOULD I DO NEXT?
Corporate Synergies will continue to release information and guidance as to how the carriers will be administering this new legislation as it is released. To review the recent legislation, please click here: Senate Bill 189 & House Bill 838.

If you have any additional questions regarding the information within this eCommunication, please call Corporate Synergies at 1.866.CSG.1719 or CLICK HERE to contact us today.