Health-care reform provides a boon to recent college grads

A part of the act that goes into effect Sept. 23, 2010 requires insurance companies to extend coverage to dependents under their parents plans until they are 26. In the past, coverage usually has expired as the dependent reaches a certain age or graduates from college.

Many Ohio University graduates will receive a graduation present from health-insurance companies as a result of the Patient Protection and Affordable Care Act.

A part of the act that goes into effect Sept. 23, 2010 requires insurance companies to extend coverage to dependents under their parent’s plans until they are 26. In the past, coverage usually has expired as the dependent reaches a certain age or graduates from college. Students covered under OU’s health care will continue to have benefits after graduation until Aug. 31.

Kathleen Sebelius, the secretary of U.S. Health and Human Services, predicted that 1.2 million people will obtain insurance when the law takes effect, according to an article in the New York Times. Almost one third of the 46 million uninsured in the United States are between the ages of 19 and 29. he number is so high because this age group is the one most likely to have part-time or entry-level positions that don’t provide health insurance, according to the article.

Over the last several weeks insurance companies and employers have been struggling to decide whether they will begin implementing the law immediately, or wait until the Jan. 1, 2011 deadline to notify subscribers their dependents can re-enroll for coverage. Many large insurance companies such as Blue Cross Blue Shield and United Healthcare have decided to allow graduating students to keep their plan to avoid any gap in coverage.

"Accelerating the dependent coverage extension timeline for our graduating student enrollees is another tangible step we are taking to help translate the new, complex healthreform directives into workable reality," said Gail Boudreaux, president of United Healthcare, in a press release.

For insurance companies, early implementation can increase revenue, but it comes at a cost for employer-sponsored health-care programs that must pay to notify their employees that their children are eligible, as well as any costs the insurance companies may impose. he costs could be passed on to employees in the form of higher premiums. Many companies are opting to wait until the deadline to avoid any extra costs they will incur from providing the additional coverage, according to he Times.

However, according to a health policy representative from the office of U.S. Sen. Sherrod Brown, D-Ohio, most Ohio health insurance companies and employers with whom the office has talked don’t have concerns that the requirement will be costly, and many have suggested they will implement the provisions before the deadline.

“For the most part most employers are pretty responsive to the desires of their employees, and so I know that they’re getting some pressure and some interest from their employees,” the representative said. “his one particular provision we don’t expect to be as costly, simply because the people we’re keeping on coverage are people who already have coverage through the employer.”

Tyler Wallace had health insurance through his parents until he graduated from OU after winter quarter. Before the law was enacted, he planned to experiment with home remedies and free clinics and hope for the best. After finding out about the new requirements, he still hasn’t deviated from that plan.

“I kind of thought that I wouldn’t have health insurance and I would just take advantage of free clinics,” he said. “Pray to whatever deity I believe in that I don’t have a horrible debilitating accident in the meantime, until I get a big-person job.”