Health Insurance Coverage for parents of employees.

[Guest brian]

Does anyone know of companies that provide health insurance for parents of employees or allow their employees to purchase the health insurance for their parents? Thanks

[KIP KRAUS]

BRIAN:

I'VE NEVER HEARD OF ANY GROUP PLAN THAT WOULD COVER PARENTS OF EMPLOYEES. I'M NOT SURE WHY AN EMPLOYEER WOULD WANT TO INCREASE ITS RISK BY OFFERING SUCH COVERAGE, AND I DON'T THINK YOU COULD GET AN INSURANCE COMPANY TO UNDERWRITE IT IN ANY EVENT. IN FACT, IT MAY BE PROHIBITED BY THE STATE INSURANCE COMMISSION.

THERE ARE A NUMBER OF OTHER REASONS I COULD GO INTO THAT COULD MAKE SUCH AN ARRANGEMENT A BAD BUSINESS DECISION, BUT I DON'T HAVE THE SPACE.

ASK AN INSURENCE CARRIER IF THAYE WOULD/COULD DO IT AND I THINK YOU'LL GET SOME EXCELENT INFORMATION.

[Guest brian]

Covering parents is allowed if the parent can be taken as a dependent per the IRS. I was just looking for companies that provide that benefit.

[Guest llerner]

The Bank of America (which is no longer) was in the press two years ago less because they began offering parent coverage for their employees. Their large population of ethnic employees requested that benefit and the article in the San Francisco Chronicle and Examiner referenced certain corps that were offering this new benefit and paying for employee's parents. Other co. were mentioned but because I had been asked that question so many times, I found it unusual that large corp were offering this. Try their web site and see if you can find it. Not much help but a lead anyway.

[KIP KRAUS]

Brian:

Even though the IRS allows a dependent parent to be covered it still can be expensive to an employer. If an employer has a fully experienced medical plan I'm sure they could offer such coverage. If the employer has a non-experienced plan, I'm not sure an insurance company would allow such coverage, but if they did I'm sure their rates would be very high. Again, I would suggest you contact several major insurers and pose this question.

[SLuskin]

The only insurance that I am aware of that typically is offered to parents is group long term care. The employee must generally purchase coverage on him/herself first. I think you can also purchase it on a spouse.