A new law will go into effect in January 2010 that requires all young adults up to age 27 to receive coverage from their parents' health insurance policy, Gov. Jim Doyle announced Thursday.
""This is a highly uninsured group of people in our state,"" Doyle said. ""If the people have a health insurance policy through their employer, or if they have one privately, that policy will now be required to cover children up to age 27 if they choose.""
As it stands now, childless full-time students can usually use their parents' policy until the age of 25, but non-students are left to find coverage on their own. Because of this, many young adults who can't afford coverage go uncovered and hope for the best.
A large part of the problem, Doyle said, is that there is no reasonable market available to this demographic.
""I think most people who have children in this age group cannot find an affordable market, and what is available is usually so high deductable and so minimal ... so this is huge,"" he said.
However, the law is not without restrictions. Coverage excludes those who are married, those who have self-funded health plans, and those who have an employer-sponsored health plan that is cheaper than their parents' plan.
The new policy will also have federal tax consequences, Doyle said, explaining the contribution of a child that is tax-dependent will be considered a part of their parents' income.
Despite the shortcomings of the new law, Doyle said he is positive about the increased security the plan will provide for young adults statewide.
""This is a really remarkable step forward for people in this state,"" Doyle said. ""I wish this were around when my kids were that age.""
