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May 31, 2006 at 04:06 PM
New Jersey officials are giving a little more information about how they plan to interpret a major new health insurance mandate.
The new mandate affects state-regulated group health plans that offer dependent coverage. In some cases, the plans will have to offer continuation benefits to adult children who have aged out of eligibility for ordinary dependent coverage.
Single, childless adults ages 18 to 30 may qualify for continuation coverage if they are living in New Jersey or attending college out of state.
Major carriers are starting to announce their young adult coverage continuation rates, and the rates range from 65% of the single-employee rate at one carrier to almost 92% of the single-employee rate at another carrier, according to Corporate Synergies Group Inc., Mount Laurel, N.J.
In theory, young adults are eligible to enroll in continuation coverage when they age out of ordinary dependent coverage or on the anniversary of the date when they aged out, Corporate Synergies says.
“Given the administrative obstacles to verifying such prior events, carriers have generally taken the stance that this aspect of the regulations will be ignored,” Corporate Synergies says.
