California to Let Kids Add Dependent Parents to Family Health Policies

The law requires health insurers and Covered California, the state’s public health insurance exchange, to refer families with dependent parents who are enrolled in Medicare, or who are eligible for Medicare, to a Medicare advisor with California’s state-run patient advocacy program, but the law does not include any provisions to keep those Medicare-eligible parents from signing up for commercial major medical insurance.

The law includes no age limitations for dependent parents enrolling in commercial coverage, and it includes no mechanisms for handling the medical bills of dependent parents who have cancer, need an organ transplant or have other expensive health problems.

Coverage Providers’ Reaction

The California Association of Health Plans has said that it has questions about how the parent dependent coverage requirement will be implemented and believes it will drive up the cost of health coverage.

The Association of California Life and Health Insurance Companies originally opposed the requirement but moved to a neutral position after lawmakers exempted group health coverage providers from the requirement and made other changes.

Medicare and Parent Dependent Coverage

Adult children who think coverage for people under 65 is better or cheaper than Medicare coverage, or who simply want everyone in the house on the same plan, might see the new parent dependent coverage as the better option.

Bonnie Burns, a consultant with California Health Advocates, who helps train California’s senior patient health advocates, says one concern is that adult children could get confused about the Medicare Part B application process.

People who turn 65 get a onetime, six-month Medicare Part B open enrollment period.

People who sign up for commercial coverage, without signing up for Medicare Part B at all, could end up facing premium penalties and enrollment delays when they want to get Medicare Part B coverage, Burns says.

That’s why patient advocates insisted that insurers and exchanges should tell the adult children to talk to Medicare advisors before adding parent dependents to individual or family coverage, Burns says.

An aerial view of San Francisco. (Photo: Jason Doiy/ALM)