One provision of the health reform law is that adult children can remain on their parents’ insurance plans. Some of the biggest insurers have said they would keep this provision in place regardless of the Supreme Court’s decision. But without the law, that benefit might be taxable. The law waived a tax provision to ensure that health insurance benefits are not taxed as income. Parents might have to pay income taxes on the benefit and employers could face higher payroll taxes. “Because after all, there would be some 24-year-old kids who are legal dependents, for whom there would be no income tax owed. And then there would be others for whom they’re not legal dependents and so there would be a tax that would be owed,” said James Klein, president of the American Benefits Council. “It would be extraordinarily confusing.”

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