Can an insurance company stipulate it’s own exceptions to kids being covered on their parents plan until 26? I have a family member that had her 24 year old son on their insurance, but he graduated last year from college, and their insurance carrier indicated that because he is no longer in school, and because the insurance is through her husband who is a retiree, their son can no longer be on the policy.
Exemptions from the 26 rule include TRICARE and grandfathered plans. The retiree plan may count as a grandfathered plan (a plan that was in effect when health reform was signed into law on March 23, 2010, and have not significantly raised premiums or changed benefits.)
According to the Department of Health and Human Services, the key is whether the retiree health plan is made up only of retirees and their dependents or a mix of both active and retired employees and dependents. If it’s a retiree-only group plan the typical setup, according to experts — then it doesn’t have to abide by the market provisions of the health law.
Read more from Kaiser.
If you are unsure you can always call the federal Department of Labor at 866-444-3272.