The politicians and the media have been quick to point out some of the new “enhancements” and early adopted components of the new healthcare law. One of those being the extension of dependent coverage to age 26. This provision is to take effect on October 1, 2010, however as many are learning that may be not be totally correct.
The actual laws states that group health plans that provide dependent coverage for children must make that coverage available to adult children up to age 26 as of the first plan year that begins on or after October 1, 2010. For calendar year plans, the compliance date is January 1, 2011.
This is where the confusion begins. Most people read that paragraph and think coverage must begin in October, but according to Mark Lacher (President of Lacher Insurance), “plan sponsors will be required to comply with this provision on the anniversary date following September 23, 2010.” Why that date? It is 6 months after the bill was signed and the actual date of compliance. So a company that has a plan year ending on June 30th, they would not need to comply with this provision until July 1st, 2011.
If you have other questions about the health care bill, please feel free to contact me.
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