I read your Keeping Adult Children Insured column about how the health-care-reform law will require insurance companies to let adult children stay on their parents’ health-insurance policies until age 26. Does that include adult children of military personnel?
No, not yet. Even though private health-care plans must let children up to age 26 stay on their parents’ policies starting in the plan year after September 23, 2010 (generally that means starting January 1, 2011), the law doesn’t automatically apply to Tricare, which provides health coverage for members of the military, their families and military retirees.
Currently, dependent children may remain on their parents’ Tricare policies until age 21, or age 23 for full-time students who rely on their parents for more than 50% of their support. But Congress is working on extending the age that children can stay on their parents’ policies. The Tricare Dependent Coverage Extension Act, which was introduced in both the Senate and the House, would extend dependent coverage until age 26 and allow the program to charge an extra monthly premium for the new coverage. This provision was included in the 2011 Defense Authorization Act (the annual military budget), which the House has passed but the Senate has not yet voted on.
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.
Will military health-insurance plans be considered “Cadillac” plans subject to a 40% tax?
No. Tricare and the veterans’ health-care program are not subject to the provision of the law that would impose a 40% tax on insurers for the portion of high-value health-insurance plans worth more than $10,200 for individuals or $27,500 for families.
See A Tax on Health Benefits for more information on the tax rules for private Cadillac health-insurance plans. See Military Health Coverage and Health Reform for more about health-care reform and military families.
-
The Stoic Retirement: Ancient Wisdom for Today's RealityA "Stoic retirement" doesn't mean depriving yourself. It's a character-based approach to life and aging that can bring calm and clarity.
-
My Teen Crashed His Car and Now Our Insurance Has Tripled. What Now?Dealing with the costly aftermath of a teen car accident is stressful. Here are your options for navigating it.
-
11 Outrageous Ways To Spend Money in RetirementWhether you have excess cash to spend or want to pretend, here’s a look at 11 ridiculous ways retirees can splurge.
-
Credit Report Error? They All Mattercredit & debt Don't dismiss a minor error. It could be the sign of something more serious.
-
Insurance for a Learning Driverinsurance Adding a teen driver to your plan will raise premiums, but there are things you can do to help reduce them.
-
529 Plans Aren’t Just for Kids529 Plans You don’t have to be college-age to use the money tax-free, but there are stipulations.
-
When to Transfer Ownership of a Custodial Accountsavings Before your child turns 18, you should check with your broker about the account's age of majority and termination.
-
Borrowers Get More Time to Repay 401(k) Loans
retirement If you leave your job while you have an outstanding 401(k) loan, Uncle Sam now gives you extra time to repay it -- thanks to the new tax law.
-
When It Pays to Buy Travel Insurance
Travel Investing in travel insurance can help recover some costs when your vacation gets ruined by a natural disaster, medical emergency or other catastrophe.
-
What Travel Insurance Covers When Planes Are Grounded
Travel Your travel insurance might help with some costs if your trip was delayed because of the recent grounding of Boeing 737 Max planes.
-
Ways to Spend Your Flexible Spending Account Money by March 15 Deadline
spending Many workers will be hitting the drugstore in the next few days to use up leftover flexible spending account money from 2018 so they don’t lose it.
