Associated Press: New Coverage for Young Adults Will Raise Premiums
Letting young adults stay on their parents’ health insurance until they turn 26 will nudge premiums nearly 1 percent higher for employer plans, the government said in an estimate released Monday.
The coverage requirement, effective starting later this year, is one of the most anticipated early benefits of President Barack Obama’s new health care law. Many insurers have already started offering extended coverage to families who purchase their coverage directly. And employers say parents have flooded their benefits departments with questions.
The Health and Human Services Department released estimates of the costs and benefits of the requirement as part of a regulation directing employers and insurers how to carry it out.
The new benefit will cost $3,380 for each dependent, raising premiums by 0.7 percent in 2011 for employer plans, according to the department’s mid-range estimate. Some 1.2 million young adults are expected to sign up, more than half of whom would have been uninsured.
The situation is different for people buying their family coverage directly from an insurer, as many self-employed parents do. Unlike employers, insurers in the individual market do not have to spread the costs broadly. Parents would face an estimated additional premium of $2,360 in 2011.
Enrollment as well as cost would increase modestly after 2011 for both employer and individual plans. Starting in 2014, the major changes of the new health care law go into effect. New competitive insurance markets would open for business, government tax credits would be available to help pay premiums, and insurers would no longer be allowed to deny coverage to those in poor health. Most Americans would be then required to carry health insurance.
Another day, another admission of increased cost from either the Obama administration or its sycophantic press. Even if I had all day at the computer, even if I didn’t have to work during the day and spend the nighttime studying and packing our house, I still couldn’t reconcile all of the stories of how this health care reform law is going to adversely affect Americans.