labor lawAdivision of labor law center

A new state law that permits parents to keep sons and daughters (and other dependents) on their health insurance until age 26 will affect many Illinois employers. The law also permits parents to extend coverage for dependents who are veterans until age 30.

 

This new law goes into effect on June 1, 2009. Families will have 90 days after their policy is renewed, to add the dependent to an existing policy. Each year thereafter, parents will be able to enroll dependents during the normal open enrollment period.

 

Illinois Governor Rod Blagojevich used his amendatory veto to interject the changes into a health care bill, House Bill 5285. The original bill allows college students to remain on a parent’s health insurance for a year after dropping out or reducing course load to part-time due to a disability.

 

Blagojevich has worked hard to increase health care coverage in the state, adding more protections for children. Opponents point out that the measures have cost the state thousands of dollars that it can ill afford.

 

“Today I am pleased to say, that because the General Assembly accepted my improvements to House Bill 5285, more Illinoisans will have access to healthcare, and more families can have the peace of mind knowing their dependents have health insurance. Now 300,000 uninsured Illinoisans in their early twenties will have an opportunity to get coverage, which means they won’t have to worry about a catastrophic accident putting them into debt. If a young person has diabetes or another chronic illness, they won’t have to worry about how to cover their everyday care,” said Governor Blagojevich.

 

Over 300,000 Illinoisans between the ages of 19-25, or about 25%, are currently uninsured. According to Blagojevich, many of them lack the means and opportunity to get affordable health insurance coverage.

 

Being able to stay on their parents’ or guardians’ health plans will allow thousands of young adults to keep or get access to more affordable coverage, get regular checkups and receive preventative care. Currently, many young people rely on emergency room visits because they cannot afford regular medical checkups or routine doctor’s visits. Proponents of the bill contend that it will allow young people greater access to screening for diabetes, cancer and other serious health conditions.

 

The state General Assembly voted to accept the amended bill last week.  

 

Twenty states have enacted some dependent coverage expansion to allow dependents to stay on their parents’ or guardians’ policies into their mid-twenties. With the Governor’s action, Illinois will have the second strongest law in the nation – according to his PR department — with regard to expanded dependent coverage. Illinois does not currently have an age requirement for dependent coverage. Instead, insurers define dependent on a policy to policy basis. Many policies cover sons and daughters only until age 18, or full-time students until age 25. This often means that parents don’t have the choice to extend coverage, even if they want to.  

 

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