New York May Require Longer Coverage for Family Health Plans

[Auburn85 438]

http://www.bloomberg.com/apps/news?pid=206...&refer=home

By Michael Quint

Jan. 6 (Bloomberg) -- Group health insurers in New York would have to give parents the option to extend coverage to their children until age 30 under a proposal Governor David Paterson plans to introduce, state officials said.

The proposal would provide young adults “the opportunity to purchase insurance at the much more affordable family/group rate from their parents’ employers,” Paterson said in a statement.

Currently, coverage under a parent’s group plan ceases when a young person graduates from high school or college. New York, with a total population of 19.3 million, has 2.5 million people without health insurance. About 31 percent, or 775,000, of those are 19 to 29 years old, according to Jon Cohen, a senior adviser to Paterson.

The change would require legislators’ approval and will be included in Paterson’s State of the State address, scheduled for 1 p.m. tomorrow in Albany, the state capital. The state Insurance Department would oversee prices and rules for the new policies.

Premiums for young adults may be 20 percent to 40 percent lower than the $375-a-month average for individuals in a group plan because 19- to 29-year-olds incur fewer medical expenses than the population as a whole, according to Joseph Baker, secretary for health and human services in the governor’s office.

In New York, individual policies that aren’t part of a group plan have monthly premiums averaging about $900, Baker said on a conference call with reporters.

About 80,000 people would likely take advantage of the coverage in the first year if the measure is enacted, Baker said. He said New Jersey, which has a similar rule, hasn’t seen higher premiums for group health insurance policies.

Extended coverage for young adults wouldn’t cost the state more, Baker said. Only people who remain unmarried and who aren’t covered by other health insurance would be eligible, he said.

[MDM4AU 339]

Why stop at 30? Why not just keep them on until they get married or are eligible for coverage elsewhere?

Because many people do not get out of school prior to 25, many carriers are covering dependents until 25 regardless of student status. That seems reasonable to me. I don't get the age 30 thing.

[au2004ece 30]

http://www.bloomberg.com/apps/news?pid=206...&refer=home

By Michael Quint

Jan. 6 (Bloomberg) -- Group health insurers in New York would have to give parents the option to extend coverage to their children until age 30 under a proposal Governor David Paterson plans to introduce, state officials said.

The proposal would provide young adults “the opportunity to purchase insurance at the much more affordable family/group rate from their parents’ employers,” Paterson said in a statement.

Currently, coverage under a parent’s group plan ceases when a young person graduates from high school or college. New York, with a total population of 19.3 million, has 2.5 million people without health insurance. About 31 percent, or 775,000, of those are 19 to 29 years old, according to Jon Cohen, a senior adviser to Paterson.

The change would require legislators’ approval and will be included in Paterson’s State of the State address, scheduled for 1 p.m. tomorrow in Albany, the state capital. The state Insurance Department would oversee prices and rules for the new policies.

Premiums for young adults may be 20 percent to 40 percent lower than the $375-a-month average for individuals in a group plan because 19- to 29-year-olds incur fewer medical expenses than the population as a whole, according to Joseph Baker, secretary for health and human services in the governor’s office.

In New York, individual policies that aren’t part of a group plan have monthly premiums averaging about $900, Baker said on a conference call with reporters.

About 80,000 people would likely take advantage of the coverage in the first year if the measure is enacted, Baker said. He said New Jersey, which has a similar rule, hasn’t seen higher premiums for group health insurance policies.

Extended coverage for young adults wouldn’t cost the state more, Baker said. Only people who remain unmarried and who aren’t covered by other health insurance would be eligible, he said.

What the idiots that come up with these types of laws (that tell companies how to run their own business) don't realize is that the extra cost that would have been paid by 28 year olds will now be wrapped into the family group rate if the law passes! So, really the government would cause a transfer of expenses from those that are in the post-college to 30 year old range to all people that have family coverage.

When are we going to remember that the government cannot create overall savings? They can only transfer expenses from one group to another.