What You Need to Know
- Assembly Bill 570 will let adult children add parents and stepparents who are dependents to individual and family coverage.
- The new law is set to take effect in 2023.
- The law contains no age limitations, no requirements for parents who are eligible for Medicare to stick with Medicare, and no special provisions for dependent parents who have catastrophic health problems.
California has a new law that could help some older adults, including adults 65 or older, get ordinary family major medical insurance.
The law, created by California Assembly Bill 570, will let adult children with individual or family major medical insurance add parents or stepparents who are dependents to their coverage.
The California Department of Insurance drew attention to the new law in an announcement about new laws set to take effect this year.
Open enrollment for the parent dependent coverage is set to start in November. The first parent dependent coverage sold would come to life in 2023.
What Assembly Bill 570 Means
The California Health Benefits Review Program has predicted that adult children in California might use the new law to cover 20,000 to 80,000 parents and stepparents.
The families who use the option could get welcome help with simplifying their family health coverage arrangements and paying for the coverage.
California regulates health insurance companies and managed care companies separately.
If adult children use the new law to cover high numbers of parents who have high health costs, the law could increase health coverage providers’ claim costs.
For dependent parents who are about to turn 65, or who are already 65, using the new law to sign up for commercial coverage could complicate efforts to enroll in Medicare.
The law makes the dependent parent coverage access option to parents and stepparents who qualify as the children’s dependents under federal law.
That means the adult children have to be providing at least half of the dependent parent or dependent stepparent’s support.