The Homa Files

OK, everybody knows that under ObamaCare insurance companies will have to allow parents to cover their “adult children” until age 26:

SEC. 2714. EXTENSION OF DEPENDENT COVERAGE FOR YOUNG PEOPLE UP TO 26TH BIRTHDAY THROUGH PARENTS’ INSURANCE .
(a) In general – A group health plan and a health insurance issuer offering group or individual health insurance coverage that provides dependent coverage of children shall continue to make such coverage available for an adult child (who is not married) until the child turns 26 years of age. [Effective 6 months after enactment.]

The way the media is covering this aspect of the plan, there seems to be a presumption that this is a free-rider program — just add them to the policy and pay the same premium. 

I don’t think so …

If the adult-child (whatever the heck that is) were to buy their own policy, the price would probably be about $5,000. 

It’s hard to imagine that insurance companies will just give $5,000 of extended family coverage for free.

And, I can’t imagine that employers will pick up any part of the tab as an employee benefit — why should they ?

So, parents will have the opportunity to shell out $5,000 to provide each of their adult-children with health insurance.

I predict major outrage when people figure out that that this isn’t a free lunch …

* * * * *

Sidenote:

Married adult-children aren’t covered … but the statute is silent on the children of unmarried adult-children. 

Just watch this one develop …

This entry was posted on March 26, 2010 at 7:58 am and is filed under Health Care / Medical Insurance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.