HR3590 Health Care Bill & Government Health Insurance

One of the provisions of the HR 3590 or the Patient Protection and Affordable Care Act (PPACA), due for implementation before the end of the year, is the allowing of young adults to stay on the health insurance of their parents until they reach the age of 26.

This change in coverage requirement has a lot of people excited, and there are some insurers that have already begun to offer extended coverage to families who choose to purchase their coverage directly. Employers have also revealed that parents are already turning to benefits departments for more information about the provision.

According to estimates released by the Health and Human Services Department on Monday, the extended coverage will result in a premium increase of nearly 1 percent for employer plans. Estimates reveal that the new benefit will cost $3,380 for each dependent. This will increase the premium for employer plans by 0.7 percent by 2011. This increase will be added to the expected 6.5 to 7 percent increase in premiums even without health care reform.

As it is, employers usually allow their employers to retain children who are in college on their health plans until they graduate. With health care reform, however, it will no longer be necessary for a young adult to stay in school to continue to be covered by health insurance. Extended coverage for young adults also cannot be charged more than other dependents, or be provided with less benefits.

An estimated 1.2 million young adults are expected to avail of the provision, with more than half of them currently uninsured.