WASHINGTON – Letting young adults stay on their parents' health insurance until they turn 26 will nudge premiums nearly 1 percent higher for employer plans, the government said in an estimate released Monday.

The coverage requirement, effective starting later this year, is one of the most anticipated early benefits of President Barack Obama's new health care law. Many insurers have already started offering extended coverage to families who purchase their coverage directly. And employers say parents have flooded their benefits departments with questions.

The Health and Human Services Department released estimates of the costs and benefits of the requirement as part of a regulation directing employers and insurers how to carry it out.

The new benefit will cost $3,380 for each dependent, raising premiums by 0.7 percent in 2011 for employer plans, according to the department's mid-range estimate. Some 1.2 million young adults are expected to sign up, more than half of whom would have been uninsured.

Extended coverage will be required starting this fall, for health plan years beginning on or after Sept. 23.

That premium increase will come on top of hikes employers already expect for next year. Large companies forecast that premiums will rise between 6.5 percent and 7 percent without the impact of the health care overhaul, according to an early survey by the National Business Group on Health and benefits consultant Towers Watson.

Family coverage through the workplace now averages about $13,400 a year_ counting both the shares paid by the employer and worker. Many employers allow workers to keep college students on the company health plan until they graduate. But under the new law, staying in school would no longer be required.

The regulation also specifies that young adults offered extended coverage through an employer cannot be charged more than other dependents, nor can they be offered a lesser set of benefits. Instead, the cost must be spread broadly.

The situation is different for people buying their family coverage directly from an insurer, as many self-employed parents do. Unlike employers, insurers in the individual market do not have to spread the costs broadly. Parents would face an estimated additional premium of $2,360 in 2011.

Enrollment as well as cost would increase modestly after 2011 for both employer and individual plans. Starting in 2014, the major changes of the new health care law go into effect. New competitive insurance markets would open for business, government tax credits would be available to help pay premiums, and insurers would no longer be allowed to deny coverage to those in poor health. Most Americans would be then required to carry health insurance.


http://news.yahoo.com/s/ap/20100510/ap_on_bi_ge/us_health_overhaul_young_adults

So ... at what age does 'childhood' end these days ... ? I guess these 'children' are still living at home, too, while they draw ever closer to their third decade of life ...

That obummercare just might do da trick to get him back in the door or is that in the back door.

I get soooo confused!!!

Is that a 'back-door' way of sayin' that 'The ONE' is a 'back door man' ... ?

He's gotta' be bi. He's screwin' all of us, male and female. Gotta' investigate if he draws the line at screwin' close relatives.

Ummm ... y' might wanna start by askin' his bro' (the one livin' in the mud hut in Kenya on $24 a year) or his 'Auntie Zeytuni' ... the one who's been in the country now for over - what, 4 or 5 - years on an expired visa ... Since he takes care of 'family' so well, we can only imagine how much care and concern he's gonna have for the rest of us ...

This is a nice option for parents whose children are in college for a doctorate. The kids can't afford to get insurance for themselves.

If it were to cost a bit more parents aren't going to mind.

No doubt. He only uses people, including his family.

Like Sgt. Preston of the Yukon used to say ... "King, this case is closed!" ...

Wow....so premiums are going up 1%??

What a great time to accuse Obama of "using" his family.

Way to stay on topic there, gang.

Your irrational hatred is showing.

That's funny because the average age of people getting their doctorate is in the mid 30's

http://www.nsf.gov/statistics/infbrief/nsf06312/

And it seems mst that are going for it are allready in their profession so they have insurance through where they work.

The ones who take that long are not being funded by their parents anyway.

If they are in school full time they are probably not working a job that gives them insurance.

I'm betting if you have a masters degree you aren't sitting on your A$$ playing video games sucking the life out of your parents while waiting to get a doctorate..

If you have a Masters degree and your parents have to pay your health insurance.. something is really wrong..

And by the way.. the average time in between the first semester of the undergraduate degree and the writing of a dissertation for the doctorate is about 10 years..

The likelihood of someone straight out of high school going nonstop to the doctorate is slim to none..

If mommy and daddy have enough money to pay for a doctorate then they can foot the bill for their kids insurance. Why should ot be placed on those of us working and paying our own insurance.

Not completely accurate here.

Full time students all the way to a doctorate with their parents help are not the common place you are right but they are out there and those parents will be glad to be able to do insurance for their kids.

They had to drop their kids before 23 before this bill went through.

READ THE OP

"Family coverage through the workplace now averages about $13,400 a year_ counting both the shares paid by the employer and worker. Many employers allow workers to keep college students on the company health plan until they graduate. But under the new law, staying in school would no longer be required.

The regulation also specifies that young adults offered extended coverage through an employer cannot be charged more than other dependents, nor can they be offered a lesser set of benefits. Instead, the cost must be spread broadly.

The situation is different for people buying their family coverage directly from an insurer, as many self-employed parents do. Unlike employers, insurers in the individual market do not have to spread the costs broadly. Parents would face an estimated additional premium of $2,360 in 2011".

It's not the parents of the student who will be paying it. It's all of us.Why should I have to pay for their insurance while they are still in schooland not in school.

I don't mind paying for health insurance for others so I don't know how to answer that.

I don't mind being a helping member of my country at all.

It makes me feel good to know that I help others in my country.