Orange County NC Website
14 <br />applications on June 29, 2010. Applications and more information is available at: <br />http://www.hhs.~ov/ociio/regulations/index.html#early_retiree <br />For more information about the Early Retiree Reinsurance Program, see: <br />http://www. Whitehouse. aov/the-press-office/fact-sheet-early-retiree-reinsurance-program <br />http://www.hhs.gov/ociio/regulations/index.html#early retiree <br />Changes to Coverage Requirements <br />Does the health reform law contain provisions preventing rescission? <br />Yes-in the first plan year after September 23, 2010, all health insurance plans will not be allowed to rescind coverage, <br />except in cases of fraud or abuse. (Rescission is a practice where insurance companies rescind an individual's existing <br />health insurance policy when s/he becomes ill as a way to avoid covering the individual 's health care costs.) <br />Does the health reform law contain changes to coverage requirements based on health conditions? <br />Yes-in the first plan year after September 23, 2010, all health insurance plans.will not be permitted to restrict coverage <br />for children under age 19 based on health status conditions. (Additionally, in 2014, this provision will apply to all <br />individuals.) <br />Does the health reform law contain changes regarding coverage based on income? <br />Yes-on January 1, 2011, non-grandfathered plans (new plans created after March 23, 2010) will not be permitted to limit <br />eligibility for coverage on the basis of salary or wages. <br />Changes to Coverage for Beneficiaries' Dependents <br />What types of changes will occur in 2010 that affect how employers provide coverage to beneficiaries' dependents? <br />The law requires all individual and group health insurance plans that provide coverage to beneficiaries' dependent <br />children to provide them coverage until they reach age 26. This rule applies to all plans in the individual market and new <br />employer plans. It also applies to existing employer plans (plans in existence on March 23, 2010, which are considered <br />grandfathered health plans) unless the adult child has another offer of employer-based coverage. However, in 2014, this <br />exception for grandfathered health plans will not apply and young adults up to age 26 will be able to remain on their <br />parent's employer-sponsored plan even if the young adult is eligible for coverage through their employer. <br />When will employers that provide dependent health care coverage have to implement this change? <br />This provision takes effect on September 23, 2010, and health insurance plans are expected to implement these changes <br />when they start a new plan year. However, some large employers are permitting uninsured young adults to enroll on their <br />parent's health plan prior to September 23, 2010. <br />Are beneficiaries' dependent children eligible for this coverage if they are married? <br />Yes; however the coverage does not extend to a young adult's spouse or children. <br />Some states already offer coverage to beneficiaries' adult children-how will these laws be affected? <br />About 25 states currently have laws that extend the age that children can remain on their parents' health insurance plans, <br />but eligibility rules vary by state and state requirements to extend coverage to adult children do not apply to self-funded <br />insurance plans. The dependent coverage requirements in the health reform law apply to all states and will apply to self- <br />funded plans as well as private insurance plans. However, states with broader eligibility rules for dependent coverage can <br />continue operating under these current state policies. <br />8 <br />