States Look To Increase Number of Insured Young Adults by Allowing Them To Stay on Their Parents’ Health Coverage Longer

Some states looking to reduce the number of uninsured residents have passed laws that allow young adults to stay on their parents' coverage longer, the AP/Houston Chronicle reports. Nearly all states, when regulating insurance plans for small- and medium-sized companies, set a maximum age for coverage of dependent children -- usually 19 for non-students and 23 for full-time college students. However, in the past two years, 11 states have passed laws allowing young adults to remain on their families' policies up to age 25, according to the Commonwealth Fund. Delaware, Indiana and South Dakota also passed laws allowing young adults up to age 24 to remain on their parents' coverage, and the limit has been increased to 30 years old in New Jersey.

The National Conference of Insurance Legislators is expected to vote in two weeks on a policy recommendation that would support allowing dependents to receive benefits up to age 25. According to the AP/Chronicle, an endorsement of the recommendation would be important because lawmakers across the country look to the organization for guidance on insurance issues. The Commonwealth Fund estimates that if all states extended dependent coverage to at least age 23, an additional 1.4 million people would have health insurance. Laura Tobler, director for health programs at the National Conference of State Legislatures, said, "This is one way states can address a specific age group and not have to expend a lot of state resources to extend health coverage."

Mohit Ghose, a spokesperson for America's Health Insurance Plans, said that increasing dependent age limits usually adds less than 1% to the cost of health policies. However, over time, the mandate will increase costs and could make coverage too costly for some employers and their workers, Ghose said. Ghose and Susan Laundicina, director of state research and policy for the Blue Cross Blue Shield Association, said a better solution would be to allow insurers to sell plans that would appeal to young adults, such as coverage that includes low monthly premiums and high deductibles (Freking, AP/Houston Chronicle, 2/21).