Nearly 40 percent of parents say they don't plan on keeping their adult children on their health insurance, even though health care reform law now allows them to do so.

The findings come from a survey released Monday from global insights firm Kelton Research and sponsored by eHealthInsurance, an online provider of health insurance for individuals, families and small businesses.

The survey also revealed more than four in ten (43 percent) parents of college students or grads under age 26 said they would only keep their adult children on their health insurance plan if it cost them nothing to do so.

A provision under the Patient Protection and Affordable Care Act allows adult children to retain eligibility for coverage under their parents' health insurance plans until they turn 26. The provision could potentially benefit young college graduates who may not get a job with employer-sponsored health benefits after graduation.

However, eHealthInsurance reports staying on a parent's health insurance plan is not an option for some graduates, and may not be the best choice for many others. Many parents don’t have coverage, and for those that do, it’s not a requirement to keep their adult children on their plan.

eHealth states it may be impractical to stay on a parent's health insurance plan for new graduates living in other states or areas outside their parents' insurance plan's provider network. Parents who do want to keep new grads on their health insurance plan may be required to pay additional premium costs.

The survey indicates keeping adult children on a policy may be unpopular with parents who choose to push their children toward financial independence; more than half (56 percent) expect to provide their child with financial assistance for only a year or less, or not at all, after graduation.

College students are hoping for more help, however; nearly two-thirds of current college students (63 percent) think it's only fair for parents to help them cover their health insurance costs for a year or more after graduation.

The eHealth College Student and Grads Survey was conducted by Kelton Research between April 21 and April 29 using an e-mail invitation and an online survey. Kelton Research surveyed a sample of 255 full-time college students ages 18-30 and 251 recent college graduates ages 18-30 who are in the work force or seeking employment.

The eHealth Parent Survey was conducted by Kelton Research between April 21 and April 29 using an e-mail invitation and an online survey. Kelton Research surveyed a sample of 500 parents of full-time college students or recent graduates who are in the work force or seeking employment.

Current Health Insurance Status

Many of the surveyed students get help from Mom and Dad when it comes to health insurance. Compared to 2010 survey responses, more grads are now covered by plans paid for by their parents, but this still only accounts for a minority of respondents.

Over one in two current students (52 percent) are presently covered under health insurance plans paid for by their parents
Only three in ten recent grads (31 percent) are currently covered by a health insurance policy that is paid for by their parents
- By comparison, last year's survey indicated that significantly fewer grads (14 percent) were covered by plans paid for by their parents

Cost Expectations for Individual Health Insurance

When it comes to purchasing health insurance coverage on their own, grads and students surveyed expect they'll have to pay somewhat more than they consider fair.

Students expect to pay more ($204 on average) for a private health insurance plan of their own than recent grads ($171 on average)
- And yet both are willing to pay more than may be necessary; according to a survey of plans purchased through eHealthInsurance, monthly health insurance premiums for individual coverage of 19-26-year-olds was $113, as of February 2010
Both students and recent grads think a fair price would be somewhat more affordable ($155 for students and $126 for grads)
A fair price in parents' minds, however, would be $148 on average per month

The Job Market and Health Insurance

A majority of both the students and grads surveyed expect to receive health insurance coverage as a benefit of employment. However, the survey documents a division between expectations and reality, and recent grads have a more pragmatic approach to health coverage.

Asked to identify "non-negotiable" employment benefits from a list, more students (38 percent) and grads (39 percent) said they would pass on a job that didn't offer health insurance than any other benefit
More than three in four students (80 percent) and about as many recent grads (73 percent) expect(ed) their first job after college to provide them with health insurance
- However, only 31% of grads report currently having employer-based health insurance
More recent grads (74 percent) than current students (54 percent) think it's better to live at home with Mom and Dad for the first year after college if it means having health insurance, rather than live on their own and go uninsured

Health Care Reform Knowledge

The survey shows some gaps in the students' and grads' knowledge about health care reform.

Clear majorities of both students (65 percent) and grads (59 percent) consider themselves informed about health care reform
However, although most students (53 percent) and grads (63 percent) know that, as a result of healthcare reform, they are now eligible to stay on their parents' health insurance plans until age 26,
- Over two in ten current students (21 percent) and 19 percent of grads think that subsidies are available in 2011 to help people purchase health insurance
- And a similar number of grads (23 percent) and students (16 percent) think that college graduates are required to purchase coverage on their own in 2011
  - IN FACT, these provisions of the health care reform law don't take effect until 2014
Only two in ten students (20 percent) and grads (20 percent) know that new health insurance plans now provide better access to preventive care

Instant Insights /

Survey: Many grads may not get health coverage from parents

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