The Impact of ACA on Employment-Based Health Coverage of Adult Children to Age 26

January 17, 2012

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pdf File Employee Benefit Research Institute's Report: The Impact of PPACA on Employment-Based Health Coverage of Adult Children to Age 26 (759KB) [download]

MANDATE FOR COVERING ADULT CHILDREN: The Patient Protection and Affordable Care Act (PPACA)
enacted March 23, 2010, requires that group health plans and insurers make dependent coverage available for children until they attain the age of 26, regardless of tax or student status, or dependent status as it relates to financial support. The mandate to offer coverage to adult children ages 19‒25 took effect for policy years that begin on or after Sept. 23, 2010, but since January is the beginning of the plan year for most employment-based health plans, many insurers adopted the requirements of the law before the effective date.

AVAILABLE DATA: This report reviews the evidence as to whether the mandate to extend coverage to adult
children had an effect on the percentage of young adults with coverage in late 2010 and early 2011. Data from the Census Bureau's Current Population Survey (CPS) and Survey of Income and Program Participation (SIPP) are examined, as well as data from the Center for Disease Control's National Health Interview Survey (NHIS).

ACA HAS INCREASED COVERAGE: The data from these three surveys suggest that the PPACA's coverage
mandate has resulted in