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

The findings come from a survey released Monday from globalinsights firm Kelton Research and sponsored by eHealthInsurance, an online provider of health insurance forindividuals, 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 wouldonly keep their adult children on their health insurance plan if itcost them nothing to do so.

A provision under the Patient Protection and Affordable Care Actallows adult children to retain eligibility for coverage undertheir parents' health insurance plans until they turn 26. Theprovision could potentially benefit young college graduates who maynot get a job with employer-sponsored health benefits aftergraduation.

However, eHealthInsurance reports staying on a parent's healthinsurance plan is not an option for some graduates, and may not bethe best choice for many others. Many parents don’t havecoverage, and for those that do, it’s not a requirement to keeptheir adult children on their plan.

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

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

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

The eHealth College Student and Grads Survey was conducted byKelton Research between April 21 and April 29 using an e-mailinvitation and an online survey. Kelton Research surveyed a sampleof 255 full-time college students ages 18-30 and 251 recent collegegraduates ages 18-30 who are in the work force or seekingemployment.

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

Current HealthInsurance Status

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

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

CostExpectations for Individual HealthInsurance

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

• Students expect to pay more ($204 on average) for a privatehealth insurance plan of their own than recent grads ($171 onaverage)
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  • 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 of19-26-year-olds was $113, as of February 2010
• Both students and recent grads think a fair pricewould be somewhat more affordable ($155 for students and $126 forgrads)
• A fair price in parents' minds, however, would be $148 onaverage per month

The Job Marketand Health Insurance

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

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

Health CareReform Knowledge

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

• Clear majorities of both students (65 percent) and grads (59percent) consider themselves informed about health care reform
• However, although most students (53 percent) and grads (63percent) know that, as a result of healthcare reform, they are noweligible to stay on their parents' health insurance plans until age26,
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  • Over two in ten current students (21 percent) and 19percent of grads think that subsidies are available in 2011 tohelp people purchase health insurance
  • And a similar number of grads (23 percent) and students (16percent) think that college graduates are required to purchasecoverage on their own in 2011
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    • IN FACT, these provisions of the health care reform law don'ttake effect until 2014
• Only two in ten students (20 percent) and grads (20 percent)know that new health insurance plans now provide better access topreventive care