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Frequently Asked QuestionsDependent coverage: How IBC will implement this provision
1. Why is IBC continuing health insurance coverage for dependents to age 26 prior to September 23, 2010?
On June 1, 2010, IBC voluntarily began to continue health insurance coverage for a young adult up to age 26 who is currently covered by his or her parents’ individual or employer-sponsored health plans. We are taking this step, which is not required by the new health care reform law, because we believe that it is important to allow a young adult to remain on his or her parents’ plans to help families avoid a potential gap in coverage until the coverage-to-26 provision of the law takes effect. We recognized that unless health insurance coverage was extended earlier, many young people could lose coverage and would then need to be added back on the policy when the provision takes effect.
2. Will IBC provide similar coverage for new members?
No. This change to eligibility guidelines applies only to small groups with dependents under 26 currently enrolled under their parent’s policy. We will not be reinstating adult children who were previously terminated or adding adult children back on to their parent’s plan if they are currently enrolled in a COBRA or a dependent-to-30 policy.
3. What should an adult child do if his or her coverage was previously terminated?
If an adult child no longer qualifies for coverage under the terms of his or her current policy, we encourage members to evaluate other coverage options, including COBRA or other individual products offered by IBC.
4. Does the continuation-of-coverage apply to members who are on COBRA?
No, this option does not apply to them. An overage individual who is on COBRA has an individual policy with IBC and therefore is not currently covered as a dependent on his or her parents’ policy.
6. What is the rating implication for customers who choose continuation-of-coverage?
For fully insured groups, there is no affect on the current rates. A rating factor will not be applied until the group’s renewal on or after October 1, 2010. Self-funded customers would be responsible for any claims experience for dependents to 26.
7. May an employer group opt out of offering the continuation-of-coverage?
Yes. For employers with 100+ contracts, this is a voluntary option, regardless of their funding status. If an employer elects to opt out of this early implementation, it may advise IBC, and we will terminate dependents currently enrolled based on the group’s current age criteria.
8. If a customer decides not to take the continuation-of-coverage option, when will the dependent children who were notified in April be terminated?
If a group notifies us that it does not want the early implementation of dependents to 26, we will retroactively terminate dependents who do not meet current eligibility guidelines back to April 30, 2010.
9. What rate will IBC charge for children who do not meet the plan definition of “to age 19, students to age 23”? Will they fall under the family rate?
This continuation-of-coverage option applies only to currently enrolled members. Members will remain on the policy in their current tier — for example, Family or Parent/Child.