Health reform - Coverage start date ?

[Guest DBPension]

I thought that all employers (that offer medical coverage) must begin to offer to continue coverage to children under age 26 (even if not in school) by 9/23/2010.

However, an HR rep. told me that companies that self-insure (under ERISA) do not have to offer this new coverage until 1/01/2011. Is that correct ?

[Chaz]

The requirement starts the first plan year after September 23, 2010. For calendar year plans that means it is effective January 1, 2011.

There is no difference if the plan is fully insured or self insured (although some insurers are offering the coverage earlier than required).

[Guest DBPension]

Thanks .... I suspected that may be the case, as a mid-year change in plan benefits (and therefore costs) creates multiple "issues".

[Guest Benefits Broker CO]

Many fully insured carriers are offering the extension for currently covered dependents as of June 1st, instead of waiting until after September 23rd, so that children graduating (and possibly losing coverage) this month will be able to stay on the plan. These same carriers seem to be delaying the return to the plan of previously "aged out" dependent children until the next plan anniversary on or after September 23rd.

Some of the reinsurers are allowing similar changes for partially self-funded plans, at least based on the conversations I've had with the reinsurers that we deal with.

[SLuskin]

Many fully insured carriers are offering the extension for currently covered dependents as of June 1st, instead of waiting until after September 23rd, so that children graduating (and possibly losing coverage) this month will be able to stay on the plan. These same carriers seem to be delaying the return to the plan of previously "aged out" dependent children until the next plan anniversary on or after September 23rd.

Some of the reinsurers are allowing similar changes for partially self-funded plans, at least based on the conversations I've had with the reinsurers that we deal with.

Grandfathered plans do not need to let these adult dependents on if they have access to other group coverage.