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June 15, 2010
Arkansas Blue Cross extends health insurance coverage
To help our members who have dependents who are graduating from high school or college this spring or may be “aging off” their parent’s medical policy, Arkansas Blue Cross and Blue Shield has extended health insurance coverage for most young adults up to age 26 who currently are covered by their parent’s individual or fully insured group plan.
Although this provision of the health insurance reform law (the Patient Protection and Affordable Care Act) becomes effective on the renewal date of a member’s policy beginning Sept. 23, 2010, or after, Arkansas Blue Cross, along with 38 other independent Blue Plans, has extended dependent care coverage early (it began June 1) at the request of the U.S. Secretary of Health and Human Services to prevent a disruption of services to our members.
The following is information on how this affects you and your adult child depending on your health insurance plan:
If you have an individual or family medical insurance policy
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Dependents who currently are enrolled on their parent’s coverage as of May 2010, will be allowed to remain on that coverage as long as they are under age 26. Dependents are eligible regardless of student or marital status. Dependents also are eligible regardless of whether or not they are claimed as a dependent on their parent’s tax return.
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There will be no rate impact on this change until renewal on plans already in place as of May 15 or before. However, a premium must be paid to cover the cost of the dependent.
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Those dependents who are under age 26, and who lost eligibility for dependent coverage earlier, can apply to be added back to the plan at the effective date of the regulation, which is Oct. 1, 2010.
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These dependents will be subject to medical underwriting.
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Standard pre-existing condition waiting periods will apply.
If you have a fully insured health care plan through an employer (small business or large corporation)
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Dependents who currently are enrolled on their parent’s coverage (regardless of insurance carrier) as of May 2010, will be allowed to remain on that coverage as long as they are under age 26. These dependents are eligible regardless of student or marital status. Dependents also are eligible regardless of whether or not they are claimed as a dependent on their parent’s tax return.
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Dependents who are under the age of 26, who were not covered under their parent’s plan as of May 2010, and who lost eligibility for dependent coverage earlier, can be added back to the group plan at the effective date of the regulation, which is the first renewal date beginning Oct. 1, 2010, or after.
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A special 30-day open enrollment period for dependents who had previously aged off their coverage will be held for each group health plan beginning on their renewal date. You will receive notification before the open enrollment period. Dependents on COBRA due to “aging off” their parents’ coverage, who are still younger than 26, also will be allowed to rejoin the group during open enrollment. They would again be eligible for COBRA when they reach the age of 26.
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Policies in place before March 23, 2010, are allowed to exclude coverage to dependents if they have access to their own coverage from another employer-sponsored health plan. This exception expires on Jan. 1, 2014.
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There is no premium rate impact until the group’s renewal. However, a family premium (employee/child) will continue to be charged.
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If the current plan covers dependents to age 27, the change does not impact their plan (fully insured large group plans only).
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Although this change will be made automatically, employer groups may choose to “opt out.”
If you are an employee of a self-insured group
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Your employer will make the decision. Employers are being notified of this industry trend toward early implementation.
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Without early implementation, the increase in dependent to age 26 coverage will take effect at renewal.
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A special 30-day open enrollment period for dependents who had previously aged off their coverage will be held for each group health plan beginning on their renewal date. You will receive notification before the open enrollment period.
If you have an Arkansas Blue Cross dental plan through your employer
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Dependent rules are the same as for the fully insured group health plans.
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There is no premium rate impact until the group’s renewal. However, a family premium (employee/child) will be charged.
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Although this change will be made automatically, employer groups may choose to “opt out.”
Dental plans for individuals and families (if you purchased your own dental plan)
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Dependents who are age 19 and aging off their parent’s plan can apply for an individual dental policy.
If you are a state or public school employee in Arkansas
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The change to cover dependents up to age 26 was implemented on April 1, 2010, and a 90-day open enrollment period was given to employees to add previously dropped dependents.
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The provisions for adding dependents prior to plan renewal are as follows:
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Child must be unmarried.
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Parent’s home is the primary residence of the dependent.
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Parent provides bulk of the financial support.
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After plan renewal, all dependents up to age 26 can be added regardless of their residence or marital status.
If you are a federal employee (FEP)
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This change does not impact FEP members until Jan. 1, 2011.
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