Understand Dependent Coverage
First of all, what is dependent coverage?
It is the provision in the new health care law that allows young adults to stay on their parent’s family plan until age 26. If you offer a family plan as part of your benefits package, this provision most likely applies to you. For a full explanation of the benefit, click here. Have more questions? Get them answered at our Employer Answer Center.
Why should you implement dependent coverage right away? For a few simple reasons:
Increased Productivity
Allowing young adults to join or stay on their parent’s insurance gives employees peace of mind that their child will have coverage, especially in a time of skyrocketing youth unemployment. Instead of worrying about their families, employees can focus on getting the job done.
Attract Top Talent
You already know this. Word about high employee morale spreads. Fully implementing this provision will help you attract the best and brightest to your company.
Less Paperwork
Employers who immediately implement the law avoid the administrative burden of removing young adults from their plans just to re-enroll them months later when the law takes effect. It will reduce paperwork on your end and will help make the benefits process more efficient for your employees.
Young People Are Inexpensive to Cover
Generally, young people are healthy, so they add little cost to your bottom line. In fact, they can help balance your risk pool. The Office of Budget Management predicts that extending dependent coverage will raise premiums roughly 1 percent over the course of a year.
It Is The Law
As of September 23, the expansion of dependent coverage becomes effective in law and applies to you at the start of your next plan year. So do not wait. Get these benefits in place today!