Insurers Don’t Have To Offer Extended Young Adult Coverage Unless They Want To - FDL

[WillyT]

Insurers Don’t Have To Offer Extended Young Adult Coverage Unless They Want To
By: David Dayen Monday May 10, 2010 12:22 pm

<snip>

The Department of Health and Human Services has helpfully pointed out to insurance companies how they can avoid the requirement that dependents can stay on their parent’s policies until the age of 26:

“The new policy applies only to health insurance plans that offer dependent coverage in the first place: while most insurers and employer-sponsored plans offer dependent coverage, there is no requirement to do so,” the Department of Health and Human Services said in a statement Monday.

In addition, families can be charged more for coverage of the young adult to the extent “similarly situated” individuals can be required to pay more under their health plan, HHS said. The young adults must be offered all of the benefit packages available to “similarly situated” individuals who did not lose coverage because their dependent status ended, HHS said.

I’m assuming that the second paragraph means that a dependent who smokes can be charged more, or that before the community rating laws kick in by 2014, any medical history can result in a sharp increase in rates.

But really insurance companies – or self-insured large corporations – don’t have to price young adults off their parent’s policies. According to the rule, they can simply not offer dependent coverage, and that, as they say, is that. While several insurers have actually said they would accelerate the extended coverage and start it in the coming weeks, rather than the September start date the Affordable Care Act mandates, the article points out that self-insured corporations haven’t embraced that concept. Indeed, they would rather avoid taking on more potentially sick customers onto their current insurance plans, even if young adults aged 18-26 are relatively inexpensive to insure. And nothing in the law would force them to do so, backed up by HHS’s rulemaking.

There’s a potential material benefit to insurance companies profiting off of an additional inexpensive customer in their risk pool. For a self-insured corporation that profit is far less clear, and as a result they have backed away from offering the coverage. And they apparently can just opt out, if they wish.

<snip>

Link: http://news.firedoglake.com/2010/05/10/insurers-dont-have-to-offer-extended-young-adult-coverage-unless-they-want-to/

My, that IS helpful...

:mad:

:wtf:

:banghead:

:nuke:

[Billy Burnett]

1. Man oh man. With gubmint like this ya hardly need enemies.

Brothers and Sisters, Pakistan is the enemy. Pakistan has ALWAYS been the enemy.

[havocmom]

2. Wondering how much longer those of us questioning the mandate will be tolerated

Not one of DU's better days

But, I love ya, WillyT, for continuing to bring the fine print out for us to read. We'll meet again, don't know where, don't know when, but thanks for speaking truth.

[WillyT]

6. Love Ya Too hm !!!

:loveya:

That fine print will screw ya every time, eh??? And so nice of HHS to clarify for the Insurance Cartel, No ???

BTW - The Insurance Industry is STILL exempt from Federal Anti-Trust Laws, right???

:shrug:

:hi:

[havocmom]

8. Correctamundo: Inusrance Industry STILL exempt from Anti-Trust Laws

And you have mail :hi:

[WeDidIt]

3. So what's the problem?

Seriously, what's the problem?

How many insurance companies would seriously consider dropping family plans? How the fuck would they compete without them? Anybody looking to be insured in the work place or on their own is looking for a plan to cover their family or they are single and are covering themself. If you don't cover the family, it is individual coverage which by definition would have nobody but one individual covered.

[MadHound]

4. But wait, I thought this was supposed to be a great law, that it would cure all ills.

Sadly, as the old hillbillys around here say, we got sold a pig in a poke.

And to think those of us who opposed this bill for being too corporate friendly were damned as heretics. Wonder how long we'll have to wait in order to be told that we were right after all.

A long, long time I think.

[rockymountaindem]

5. That seems like a distinction without a difference

If your company doesn't offer dependent coverage, then you probably haven't already got dependents on your policy. If they're not covered in the first place, there's no way their coverage can be extended. What's the problem?

[Warren Stupidity]

13. duh. no problem. it is FUD spew FAIL.

[Old Codger]

7. Regardless

Of any of that they can charge as much as they want, there are no caps of any sort on this stuff, they have to offer it but they can price it any way they want. Unless this is revisited and amended we are screwed as bad or worse after as before.

[DebbieCDC]

9. Oh but we were going to "fix" everything after the bill passed

Remember that meme?

<crickets>

[Raineyb]

10. I remember that meme. Oddly enough I'm not hearing much on that "fix"

Gee what a surprise. Why didn't someone predict that? Oh wait they did and were accused of throwing in with the right wing.

[D-Lee]

11. Hey, this limit is the same as COBRA ...

Coverage is to be EXTENDED if there had been family member coverage.

Otherwise, a whole different pricing would be required because there would have been no coverage priced into the prior policy cost.

[Warren Stupidity]

12. FDL: fail

Insurers offering dependent coverage will be required to cover dependent young adults up to age 26. That is the law. That law does not require that insurance policies offering individual coverage now must suddenly include dependents, nor does it require such coverage to be free. This is yet another FDL fail.

[WillyT]

14. Yep... All Those Gullible Pro-Reform Non-Political People Should Have Read The Fine Print...

Imagine all the stupid suckers who thought that their kids would be covered through age 26 no matter their current policy.

Fuckin RUBES... they'll believe ANY sales job from politicians!

Anybody who thinks that ANYONE IN WASHINGTON is dealing from a legitimate deck is AN IDIOT, and deserves what they get. Right???

:shrug:

And... when they find out that they were mislead/didn't understand/got suckered... how do you think that might influence voting patterns in the upcoming election???

:evilfrown:

[Warren Stupidity]

17. What fine print?

If you have dependent coverage today then by law that coverage will extend to adult dependents up to age 26. That is a real actual improvement to the current status of health care in our private insurance based system.

Other than the FUD purveyors, I don't think most people were under the impression that an insurance plan that today didn't cover any dependents of any age would, come September, now magically cover all their dependents up to age 26, and at no additional cost. Instead I think this is more FDL bullshit. And why? Why be this dishonest about this legislation when there is so much to pick on about it that is real and would be honest constructive criticism? Why descend into the rightwing banality of lie baby lie?

I'll answer my own question. FDL, like the right, is attacking what is actually GOOD about this legislation. They don't care about what is really wrong with it. FDL, like the right, has decided that they are opposed to it at all costs, so it is important to convince people that even that which is helpful and good in this legislation is instead harmful and bad. Shame on them for increasing the level of bullshit toxicity in the political discourse in our society, and shame on you for joining in.

[WillyT]

18. First Of All... I've NEVER Felt Shame When Discussing Politics...

Mainly because I avoid pimping weak sauced crap I don't believe in, as "reform".

Secondly... do you seriously believe that everybody has the time, energy, or inclination to read the said wet noodle reform bill that went through hundreds of revisions, compromises, and sell-outs???

I'm bettin most people believe that their kids graduating out of high school were gonna be covered AUTOMATICALLY because of this bill.

Finally... did you bother to read post #15??? Because you should.

:evilfrown:

P.S. Those of us who fought tooth and nail for Single Payer/Medicare Buy-In/Robust Public Option HAVE NOTHING TO BE ASHAMED ABOUT!!!

Those who sold their souls to the corporations and accepted the small portion of gruel given as "reform"... not so much.

[michaz]

15. Our daughter graduates from college this month. The insurance company told us

that she will be off our insurance June 1st. We have a family plan and have had for years for which we now pay $500 per month for. My husband is a retired teacher so part of his and mine are paid for by the school district (our part is the $500.) They said they had not been informed of any info from the administration as yet and that if we wanted our daughter to stay on the policy it would cost us another $500 per month for her. Her part of the $500 we pay now is $162. So I don't think we are seeing much of a deal with this new reform! And of course, with the employment situation the way it is I am not to optimistic about her finding a job that is going to offer her insurance. Yup, I am real impressed!

[WillyT]

16. Thank You For Your Personal Story...

Helps put it in real terms.

:yourock:

:hi: