A study by the Employee Benefit Research Institute reports a law that requires group health plans and insurers to make dependent coverage available for children up to age 26 will increase employment-based coverage by estimates ranging from 680,000 to 2.12 million individuals. [See related: Some firms to comply early with dependent coverage provision]
However, EBRI states there is reason to believe estimates understate the size of the population that might enroll in their parents' employment-based coverage, and the costs of the mandate are expected to increase health insurance premiums 1 percent by 2013.
EBRI lists several factors for the premium hike, including:
- Shortcomings in regulatory assumptions that the 2.6 million 19- to 25-year-olds in states that already allow them to enroll in extended coverage are unlikely to enroll under PPACA.
- It is largely impossible to factor in parents' decisions when it comes to enrolling their children.
- Contrary to regulatory assumptions, about 3 million of the 7.5 million 19- to 25-year-olds with some other form of coverage (such as Medicaid or Tricare) will be eligible to enroll in the PPACA program.
- More adult children are likely to become eligible as they gain employment.
