Are the companies that say they will extend coverage to recent grads before the new health-care-reform law takes effect also reinstating kids who are too old to be on their parents’ health-insurance policies?
Generally, early implementation of the new rule applies only to children who would otherwise be dropped from their parents’ policies before the new law kicks in. To qualify for this early effective date (June 1 for many of the companies), children must be currently covered under their parents’ policies; adult children who have already "aged out" and want to get back on must wait until the new plan year that starts after September 23, 2010 (for many plans that means January 1, 2011, because the plans operate on a calendar-year basis). Contact your firm’s HR department or the insurer for details.
My daughter is 24 and works only part-time, without any benefits. Will she be able to get back on my policy? I don’t claim her as a dependent on my taxes.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
She’ll probably be able to get back on your policy once the law takes effect. The rules are quite broad: "Adult children do not have to be dependents of the parents for tax purposes, they don’t have to be living at home, they don’t have to be full-time or part-time students, and they may be married," says Randall Abbott, senior consultant with Towers Watson, a global benefits-consulting firm. But children who have the option to sign up for health coverage through their employer cannot qualify to remain on your policy.
Regulations should be issued soon with more details about who qualifies and on the procedures for reinstating children who have been dropped from their parents’ coverage.
Other health-care news: Update on the COBRA subsidy. There’s good news for people who have been laid off recently. After several extensions, the COBRA subsidy was scheduled to expire for newly laid-off people on March 31, 2010. But Congress has okayed another extension, to May 31, 2010, for providing the 65% COBRA subsidy to people who are newly laid off. The subsidy lasts for up to 15 months.
For more information about the COBRA subsidy, see the Department of Labor’s COBRA subsidy page. For advice about how to find coverage after COBRA expires, see How to Cope Without COBRA.
-
Fed's Rate Cuts Could Have Impacts You Might Not AnticipateUnderstanding how lower interest rates could impact your wallet can help you determine the right financial moves to make.
-
Past Performance Is Not Indicative of Your Adviser's ExpertiseMany people find a financial adviser by searching online or asking for referrals from friends or family. This can actually end up costing you big-time.
-
I'm want to give my 3 grandkids $5K each for Christmas.You're comfortably retired and want to give your grandkids a big Christmas check, but their parents are worried they might spend it all. We ask the pros for help.
-
Laid Off With a Severance Package? Here’s How to Make a PlanGathering all the relevant information and staying organized is key, as is getting your financial team involved. Here are five financial planning tips to help.
-
Pandemic Aid That’s Still Availablehealth insurance Broad-based stimulus checks and the like are over, but some people still qualify for help.
-
3 Ways Early Retirees Can Minimize Their Health Insurance Costshealth insurance Until you can go on Medicare, you’ll need health insurance on your own, and of course that can be pricey. Subsidies through the Affordable Care Act can be a big help, but you need to manage your income to qualify. Here are three tips to help make that happen.
-
When It’s Time to Drop Your Parents’ Health InsuranceStarting Out: New Grads and Young Professionals Thanks to the Affordable Care Act, the uninsured rate for twenty-somethings has plummeted.
-
You Got That New Job: Now It’s Time to Make the Right Financial Choicescareers Young professionals are on the move. If you’ve made a switch or have one on the horizon, follow this checklist to keep your finances on track.
-
The Consequences of Gray DivorceDivorce Divorce has financial consequences for everyone, no matter what your age. But for those 50 and up, there are some special circumstances that make divorce more complicated and potentially more costly.
-
Health Savings Accounts Get Even BetterFinancial Planning A health savings account is a powerful, tax-advantaged tool to cover out-of-pocket medical expenses and a smart way to save for medical expenses in retirement. New rules in 2020 let HSAs and flexible spending accounts (FSAs) cover even more of your health expenses.
-
Dealing with an Early, Unexpected Retirementretirement Current economic and health crises may be pushing many toward an unexpected retirement. Now is a good time to make a plan for yourself, just in case.
