Currently in New York, parents who have coverage through a small business or buy coverage on their own in the individual market may keep their eligible children covered under their plan through age 29, regardless of student status or financial dependence on their parents. 

The new federal health care reform law, which will allow parents to keep children on their plan through age 25, applies to all plans.  That means larger businesses that currently do not have to comply with New York law will have to extend coverage to eligible families as required by federal law. 

Federal rules for this new law are not out yet, so exactly how it will work with New York's existing law is not certain.  However, parents with coverage that is subject to New York law (e.g., coverage through a small business or in the individual market) will likely be able to continue it for eligible children beyond the federal requirement and through age 29 as permitted under State law.  Parents employed by larger-businesses that are only subject to federal law may not be able to continue coverage past age 26.

The federal law is scheduled to take effect after September 23rd of this year as follows:

• For new group and individual plans that provide coverage for children, eligible young adults can stay on their parent's plan through age 25 after September 23rd, in accordance with federal law. 
• For existing employer-sponsored and individually purchased plans that provide coverage for children, some plans may voluntarily permit graduating children to remain on their parents' plan.  Otherwise, the federal law may not take effect until after September 2010 when the new plan year starts.  In addition, under both federal and New York law, existing plans offered by employers do not have to cover a young adult if the child is eligible to enroll in other group coverage, such as through his or her own job.

Updated information on how the new federal law will work in New York will be added as it is released, so please check back regularly on NYC Health Insurance Link.

Sources:  Patient Protection and Affordable Care Act; Health Care and Education Reconciliation Act of 2010; NYS Department of Insurance "Age 29 Dependent Coverage Extension" website (http://www.ins.state.ny.us/health/S6030_Age29.htm), accessed on April 2, 2010;

Kaiser Family Foundation Summary of New Health Reform Law (http://www.kff.org/healthreform/upload/finalhcr.pdf), accessed April 2, 2010;

Statement from HHS Secretary Kathleen Sebelius on Expedited Efforts by HHS to Work with Insurers to Voluntarily Provide Coverage for Graduating College Seniors and Young Adults under Age Twenty Six in Advance of September Start Date in New Law (http://www.hhs.gov/news/press/2010pres/04/20100419a.html ), accessed April 19, 2010.

Note:  The information contained on this website is for informational purposes only.  Other costs, benefits, terms, and limitations may apply.  Please contact an insurer, employer, broker, or consult the appropriate regulatory officials for complete information before making any change or decisions related to your coverage.

Last updated:  April 19, 2010