New Regulations Significantly Affect Dependent Coverage Under Group Health Plans

On May 10, 2010, the Departments of Health and Human Services, Treasury and Labor issued regulations interpreting the provision under the Patient Protection and Affordable Care Act (PPACA) that requires group health plans and insurers to offer dependent coverage to children until they reach age 26. In interpreting this requirement, the regulations also significantly affect the way in which group health plans can define which minor dependent children are eligible for coverage. These regulations will be effective for plan years on or after Sept. 23, 2010, so employers should begin considering how they will affect their health plan designs.

PPACA and the subsequent Reconciliation Act provide that a group health plan providing dependent coverage for children of employees must continue to make that coverage available for an adult child until the child turns 26 years of age. PPACA further authorized the issuance of regulations to define those dependents to whom