Assistant Secretary of Labor Phyllis C. Borzi urged employersTuesday to immediately change their employee health insurance tomake dependent coverage available for children up to age 26 ontheir parents' health plan.

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Borzi on Tuesday issued the following statement regarding theAffordable Care Act:

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"The Affordable Care Act lets young adults stay on theirparents' health care plan until age 26. Before the President signedthis landmark Act into law, many health plans and issuers could anddid in fact remove young adults from their parents' policiesbecause of their age, leaving many college graduates and otherswith no coverage.

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"Young adults are uninsured at the highest rate of any age groupand have the lowest rate of access to employer-based coverage. TheAffordable Care Act requires employee benefit plans and issuersthat offer dependent coverage to children to make the coverageavailable until the adult child reaches the age of 26.

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"On May 10, 2010, the Departments of Labor, Health and HumanServices and Treasury issued regulations implementing theAffordable Care Act by expanding coverage for adult children up toage 26. The benefits become effective for plan years beginning onor after Sept. 23, 2010. For calendar year plans, that will meanthe provisions will become effective beginning Jan. 1, 2011. Keyelements include:

  • Coverage Extended to More Children
  • All Eligible Young Adults Will Have An EnrollmentOpportunity
  • Same Benefits/Same Price

"Affordable health coverage for adult children will provideemotional and financial peace of mind to parents across thiscountry. We encourage employers and private-sector health plans tomake this important health coverage available immediately. It makesgood business sense, and I thank those companies who have decidedto adopt this provision earlier than the September effectivedate."

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