Posts Categorized: Health Benefits

Michelle’s Law is Still Alive (Barely)

in Affordable Care Act, Health Benefits

As noted in our August 17th post, many sponsors are applying the age 26 regulations to children as defined in IRC Section 152(f)(1). This means that other children, such as children of a legal guardian, children of a domestic partner or grandchildren, would not be covered by the mandatory age 26 rules. Thus, applicable plans could apply the usual dependency tests to these children as they have in the past (e.g., age 19 and age 25 if a full time student).   If a plan sponsor did apply full-time student rules to children not covered by the age 26 regulations, then Michelle’s Law would still apply to those children…. Continue Reading

Definition of “Child” for Age 26 Requirements

in Affordable Care Act, Health Benefits

The age 26 regulations require all applicable plans to cover dependant children until they reach age 26. Unfortunately, the regulations created tremendous uncertainly by not providing for a definition of “child.” Therefore, plan sponsors do not know to which classifications of children the age 26 rules should apply. However, hope may be on the horizon. Last week, a meeting took place with DOL/IRS/HHS and as part of this meeting, industry attendees suggested that the age 26 rules apply the definition of child used in IRC 152(f)(1). This would include biological children, adopted children, step-children and foster children. It is too soon to tell whether the agencies will accept this definition, but because employers… Continue Reading