In prior entries, I made reference to the fact that the new Health Care Reform provisions will require lots of regulations and guidance from the various federal agencies.  The US Department of Labor has issued its first round of guidance that address the extension of coverage to dependents up to Age 26.

By way of background, The Affordable Care Act requires plans and issuers that offer dependent coverage to make the coverage available until a child reaches the age of 26.  Both married and unmarried children qualify for this coverage.  This rule applies to all plans in the individual market and to new employer plans.  It also applies to existing employer plans unless the adult child has another offer of employer-based coverage (such as through his or her job).  Beginning in 2014, children up to age 26 can stay on their parent's employer plan even if they have another offer of coverage through an employer.

Some interesting points on this initial guidance:

• For plan years beginning after 9/23/10, plans are going to have to give written notice and open enrollment rights to these eligible dependents
• The Dependent can not be required to pay more for the coverage than similarly situated individuals.
• Coverage is not offered to children of children or spouses of the eligible dependent.
• Age 26 Dependent coverage can be purchased with pre-tax dollars.
• The coverage terminates on the date the dependent turns 26 (not through age 26)

The regulation available here.   A fact sheet is available here.   Finally, an FAQ sheet is available here.  We will continue to monitor and provide updates about any guidance issued.  In the interim, please contact your attorney at Fox Rothschild if you have any questions about reform and its impact on your company or plan.