Posts Tagged ‘who is a dependent’

Adult Children and HSA’s

Health Care Reform requires health plans to cover adult children to age 26. For plan years effective after 9/23/10, plans that cover dependent children must also provide coverage for adult children through age 26. However, this new rule does not allow out of pocket expenses for these adult children to be reimbursed out of HSAs. Check out more blogs about HSA’s.

This brings up a number of questions for HSAs. These talking points should help you when discussing the impact to HSAs on your family. Review the rules for determining dependent status.

Tax Dependent v. Non-Tax Dependent Child

Getting Your Adult Children Off Your Health Care Plan

One of the first changes of health care reform (The Patient Protection and Affordable Care Act) effects people under the age of 26. Previously, once a person turned 19 and was no longer a full time student, he could not be covered under his parents’ health care plan. What this meant is that people in their 20’s often went uninsured. Click here to learn who is a dependent for health insurance purposes. However, effective September 23, 2010 a person can remain on their parents’ health insurance plan until the age of 26. That is certainly better than being uninsured, but it is the most affordable option for parents? Probably not. Compare health insurance rates now. Here is the case for getting young adults their own health insurance plan:

Who is a “Dependent” For Health Insurance Plans

Author: Filice Insurance Compliance Department

Many health plans provide coverage for dependent children of the plan’s participants. Traditionally, health plans have had significant flexibility in determining which individuals would be eligible to be covered as dependents. However, this flexibility is affected by the health care reform requirement to provide coverage up to age 26 and by some state laws.

Whether dependent coverage under a health plan is tax-free (at the federal level) depends on whether the individuals covered as dependents also qualify as dependents under the Internal Revenue Code (the Code or tax code). An individual can qualify as a dependent under the Code by being any one of the following:

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