Health Care Reform Q&A With the VSCPA Insurance Center: Dependent Age

Question: When does the dependent age limit increase to 26? How can children be added back to plans?

Answer: The required date for implementation is the first plan year following September 23, 2010 (i.e. health plan renewal). However, many insurance carriers have already begun allowing dependents who would ordinarily be terminated due to age limitations to remain on plans in an effort to avoid coverage disruptions. If a child has “aged off” prior to this accommodation and desires to re-enroll, they will be able to do so when the group’s policy is amended with the new age 26 dependent provision. The tax treatment of this benefit is addressed in IRS Notice 2010-38 and can be found by following this link www.irs.gov/pub/irs-drop/n-10-38.pdf.

Health Care Reform Q&A is facilitated by the VSCPA Insurance Center. Have a question? Leave a comment, or contact the VSCPA Insurance Center directly.