Can a dependent under age 26 who is employed in a family business remain on his parents plan with the group or should he obtain his own coverage?
Under Health Care Reform, group health plans that offer coverage for dependent children must make that coverage available to certain adult children until they reach age 26. However, there is an exception for grandfathered plans (a group health plan that was in existence on March 23, 2010). Until plan years beginning on or after January 1, 2014, grandfathered plans can exclude an adult child from coverage if he is eligible to enroll in his own employer-sponsored group health plan. Since the adult child is eligible for his own coverage under his employer’s plan, as long as the employer’s plan is considered a grandfathered plan, he can be excluded from coverage under the parent’s plan.
