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Prepared by Mike Ewing, J.D.
Director of Research
United Actuarial Services, Inc.
(317) 580-8659
Fax (317) 580-8651
email: mewing@unitedactuarial.com
© United Actuarial Services, Inc. 2010
2010-34
May 10, 2010
Regulations Issued Relating to
Dependent Coverage of Children to Age 26
Under the Patient Protection and Affordable Care Act
The Departments of Treasury, Labor and Health and Human Services jointly posted
pre-publication versions of Interim Final Rules (“regulations”) for group health plans
and health insurance issuers relating to dependent coverage of children to age 26
under the Patient Protection and Affordable Care Act (PPACA). Section 2714 of the
PPACA requires group health plans (insured or self-insured, including collectively
bargained plans) to cover participants’ dependents through age 26. The regulation
is effective 60 days after publication. For more information on the PPACA see
The regulation and Preamble can be accessed at:
or by “clicking here.” A
specially prepared version of just the regulations with a Table of Contents added is
available by “clicking here.” The DOL posted some Frequently Asked Questions
(FAQs)
that are
available at: http://www.dol.gov/ebsa/pdf/faq-
dependentcoverage.pdf or by “clicking here” and a Fact Sheet that is available at:
or by “clicking here.” A
specially prepared copy of the FAQs with a Table of Contents added and the FAQS
numbered is available by “clicking here.”
On a related note, recently issued IRS Notice 2010-38
allows plans to cover
dependents who have not turned 27 through the end of the taxable year the
dependent turns age 26. This allows plans to provide coverage through the end of
the plan year the dependent turns age 26 instead of cutting off coverage during the
plan year on the date the dependent turned age 26. Plans are not required to
continue coverage past the dependent’s 26th birthday, but now have that option of
doing so without any adverse tax effects for the participant. See Benefit News
Application to Grandfathered Plans
This age 26 dependant coverage extension applies to grandfathered and non-
grandfathered plans by the first day of the first plan year beginning on or after
September 23, 2010, or January 1, 2011 for calendar year plans. However, for
plan years beginning prior to
January 1,
2014, the regulations provide that a
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