We just received an email from HR advising of our open enrollment starting for benefits. We were notified of some changes to our health coverage including a 12% increase. Also one change, due to Obamacare, that she made us aware of was this....

 

Health care reform changes – You can now cover dependents up to age 26 regardless of student status, regardless of whether you claim them as a dependent on your tax return, regardless if they are married, regardless if they have access to health insurance through their own employer. This only applies to health insurance.

 

Now I know dependents would be covered up to 26 years of age but I thought it was only if they were a full time student. I can see making the argument for students but to me it is assinine require this for non students.

 

Can someone give me a good reason for this?

We just received an email from HR advising of our open enrollment starting for benefits. We were notified of some changes to our health coverage including a 12% increase. Also one change, due to Obamacare, that she made us aware of was this....

 

 

 

Now I know dependents would be covered up to 26 years of age but I thought it was only if they were a full time student. I can see making the argument for students but to me it is assinine require this for non students.

 

Can someone give me a good reason for this?

 

Well, there is the possibility that while your child may have graduated college, he/she may not have yet found a job, or found a job that is not a well-paying job and allows them the ability to afford health insurance.

Yes, I did know that.

 

No, I do not like it, and my daughter is one covered under the law.

 

Rockmom's explanation about covers the reasoning I would think.

I agree in that case but wouldn't it make more sense for it to be something like upto 1 year after graduating college or 26 years of age which ever is first? The way it is now your kid could drop out of high school and be on your insurance until they were 26.

 

Another thing I don't like is if they have a job that offers insurance they can still be covered no yours. That kind of goes against what RM is saying doesn't it?

I'm kind of surprised this is coming out now. This has been pretty much common knowledge since the end of last year. And I don't have a problem with it. I have kids that fall into just about every category. One working where it would cost a ton (in retrospect to his salary) one woking P/T ( no insurance ) and going to trade school. One going into college, works P/T ( no insurance ) and one will be a senior in HS with plans on going away to college. I am thrilled that none of them are going without health insurance, that I now can provide to them.

I'm kind of surprised this is coming out now. This has been pretty much common knowledge since the end of last year. And I don't have a problem with it. I have kids that fall into just about every category. One working where it would cost a ton (in retrospect to his salary) one woking P/T ( no insurance ) and going to trade school. One going into college, works P/T ( no insurance ) and one will be a senior in HS with plans on going away to college. I am thrilled that none of them are going without health insurance, that I now can provide to them.

 

I agree! I just don't see the downside to this.

 

For those that don't like this, would you rather have someone without health insurance who then has a health issue? This looks like a reduced liability to all of us. If the person without health insurance gets sick, then we pay the cost through added indigent expense or through some form of government support to the sick person. I would even go so far as to call this a form of privatization of an expense because this cost will now be taken on by those in the private sector who pay for this coverage.

I agree in that case but wouldn't it make more sense for it to be something like upto 1 year after graduating college or 26 years of age which ever is first? The way it is now your kid could drop out of high school and be on your insurance until they were 26.

 

Another thing I don't like is if they have a job that offers insurance they can still be covered no yours. That kind of goes against what RM is saying doesn't it?

 

Well, to the last part, not really. Often when you graduate you're not only now trying to live on your own, but you've suddenly started paying student loan debt. Entry-level jobs are often not very well paying, and in the case of more and more college graduates, jobs are not available at all. My daughter has a friend who's 25. She graduated @ 23 with a Masters in Education. She has yet to be able to find a teaching job, despite even applying to go teach in China. She's working a part time retail job right now because that's all she's been able to find.

 

And, they can go work at SBUX, but at an average wage of >$9.00, it's going to be hard to afford the benefits, DESPITE the low cost of said benefits.

I'm kind of surprised this is coming out now. This has been pretty much common knowledge since the end of last year. And I don't have a problem with it. I have kids that fall into just about every category. One working where it would cost a ton (in retrospect to his salary) one woking P/T ( no insurance ) and going to trade school. One going into college, works P/T ( no insurance ) and one will be a senior in HS with plans on going away to college. I am thrilled that none of them are going without health insurance, that I now can provide to them.

I knew of the 26 age limit but thougth it was students only. I didn't know it was for anyone. I don't have a problem with it for students or even a set amount of time after graduation but I don't like forcing companies to cover all kids until their 26.

 

Well, to the last part, not really. Often when you graduate you're not only now trying to live on your own, but you've suddenly started paying student loan debt. Entry-level jobs are often not very well paying, and in the case of more and more college graduates, jobs are not available at all. My daughter has a friend who's 25. She graduated @ 23 with a Masters in Education. She has yet to be able to find a teaching job, despite even applying to go teach in China. She's working a part time retail job right now because that's all she's been able to find.

 

And, they can go work at SBUX, but at an average wage of >$9.00, it's going to be hard to afford the benefits, DESPITE the low cost of said benefits.

Again I don't think it's a issue for students or a period of time after graduation, whatever that period is but I would say no more then a year, but to force coverage until 26 no matter the situation is silly in my mind.

 

Those that think it won't affect you is wrong. How many more people do you think this will add to your companies coverage? And a lot of family plans have a set premium no matter how many are in your family. So this won't increase the insurance companies revenue but it will increase the bodies they have to cover. Guess what they are going to do to increase revenue?

In my years at the mental health center, I was often involved in negotiating health insurance policies/premium.

 

A 12 percent increase was modest.

I knew of the 26 age limit but thougth it was students only. I didn't know it was for anyone. I don't have a problem with it for students or even a set amount of time after graduation but I don't like forcing companies to cover all kids until their 26.

 

Again I don't think it's a issue for students or a period of time after graduation, whatever that period is but I would say no more then a year, but to force coverage until 26 no matter the situation is silly in my mind.

 

Those that think it won't affect you is wrong. How many more people do you think this will add to your companies coverage? And a lot of family plans have a set premium no matter how many are in your family. So this won't increase the insurance companies revenue but it will increase the bodies they have to cover. Guess what they are going to do to increase revenue?

 

Yes, family plans have a set premium, and they are and should be the most expensive plan. Also each person has an individual, plus a total deductible that has to be met before it goes 80/20. So yep it's gonna cost me more and it's gonna cost you more. But if they aren't covered and have costs they can't pay for, who do you think foots that bill? I work for a rather large company, and there are a ton of these young adults that are now being covered that would not have been. I for one do not mind paying for it. I would hope that my peers would also feel the same for me. I know that none of my peers want to see my any of my family either not seek treatment because of no insurance or incur monumental debt if they would have a serious issue. I of course have a dog in this fight, but I find it cold and callous to oppose helping these young adults when we can.

As to forcing companies to cover them. I can choose to not list them.

In my years at the mental health center, I was often involved in negotiating health insurance policies/premium.

 

A 12 percent increase was modest.

Actually that's probably the largest increase we have been given in my 15 years working for this company. And we have increases every year.

Yes, family plans have a set premium, and they are and should be the most expensive plan. Also each person has an individual, plus a total deductible that has to be met before it goes 80/20. So yep it's gonna cost me more and it's gonna cost you more. But if they aren't covered and have costs they can't pay for, who do you think foots that bill? I work for a rather large company, and there are a ton of these young adults that are now being covered that would not have been. I for one do not mind paying for it. I would hope that my peers would also feel the same for me. I know that none of my peers want to see my any of my family either not seek treatment because of no insurance or incur monumental debt if they would have a serious issue. I of course have a dog in this fight, but I find it cold and callous to oppose helping these young adults when we can.

I guess I'm cold and callous.

Actually that's probably the largest increase we have been given in my 15 years working for this company. And we have increases every year.

 

That is very unusual. I would guess most companies have experienced somewhere between 5-15% increases annually over the past 10 years or so.

In my years at the mental health center, I was often involved in negotiating health insurance policies/premium.

 

A 12 percent increase was modest.

 

12% per year was modest?