Illinois Senate Approves Gov. Blagojevich’s Proposal To Extend Maximum Age Child Can Be Covered Under Parents’ Health Insurance
The Illinois Senate on Tuesday voted 35-17 to approve a measure that would allow as many as 300,000 young adults to remain on their parents' health plans up to age 26, or up to age 30 if they are veterans, the Chicago Tribune reports. Illinois currently does not have an age requirement for dependent coverage, so insurers set age limits on a policy-by-policy basis, with some halting coverage at 21 while others extend coverage several years for full time college students. Gov. Rod Blagojevich (D) proposed the measure as an addition to legislation that would give parents more flexibility to include children under their health policies in the event of an injury or illness that restricts them from enrolling full-time in college. The children must be single to be eligible for coverage.
Blagojevich said, "Parents of those young adults will have an option to give their children access to adequate health care," adding, "This also invites thousands of additional healthy young adults into insurance pools, which can have a positive benefit for everyone."
The law is scheduled to take effect on Jan. 1, 2009, and parents can begin including their children under their policies by the spring, the Tribune reports.
According to the Tribune, business groups have threatened to file a lawsuit to block enactment of the law, claiming that it might encourage unhealthy young adults to obtain coverage under their parents' policies, resulting in higher insurance rates for all beneficiaries. Sen. Dale Righter (R) said Blagojevich "badly dropped the ball" on the expansion language because he "cannot change the fundamental purpose" of the legislation.
Reaction
Kim Clarke Maisch, director of the Illinois branch of the National Federation of Independent Business, said, "If there's just one person who's unhealthy, the rates can skyrocket for everyone," adding, "And if there's one thing we know about the insurance industry, it's that they aren't going to pay an extra dime."
Jay Shattuck, a lobbyist with the Illinois Chamber of Commerce, said, "There are hundreds of thousands who have the option to buy coverage in the private market now that have failed to do so," adding, "Why would they seek coverage now?" Shattuck said the Chamber of Commerce will consider whether to file a lawsuit (Long/Garcia, Chicago Tribune, 8/19).
