Release Date: May 11, 2010
Statement of Assistant Secretary of Labor Phyllis C. Borzi calling on employers and benefit plans to make young adult coverage available immediately
Washington – Assistant Secretary of the Employee Benefits Security Administration Phyllis C. Borzi today issued the following statement regarding the Affordable Care Act:
"The Affordable Care Act lets young adults stay on their parents' health care plan until age 26. Before the President signed this landmark Act into law, many health plans and issuers could and did in fact remove young adults from their parents' policies because of their age, leaving many college graduates and others with no coverage.
"Young adults are uninsured at the highest rate of any age group and have the lowest rate of access to employer-based coverage. The Affordable Care Act requires employee benefit plans and issuers that offer dependent coverage to children to make the coverage available until the adult child reaches the age of 26.
"On May 10, 2010, the Departments of Labor, Health and Human Services and Treasury issued regulations implementing the Affordable Care Act by expanding coverage for adult children up to age 26. The benefits become effective for plan years beginning on or after Sept. 23, 2010. For calendar year plans, that will mean the provisions will become effective beginning Jan. 1, 2011. Key elements include:
"Affordable health coverage for adult children will provide emotional and financial peace of mind to parents across this country. We encourage employers and private-sector health plans to make this important health coverage available immediately. It makes good business sense, and I thank those companies who have decided to adopt this provision earlier than the September effective date."
For more information about implementation of the Affordable Care Act visit the EBSA webpage at www.dol.gov/ebsa/healthreform/.
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