Must our consumer-driven health plans (HRA, FSA, HSA) extend coverage to adult children under age 26?
The answer depends upon the type of account. Health Reimbursement Accounts are generally subject to the coverage mandate, which states that you must offer the same coverage options to similarly situated individuals. If you offer coverage to dependents under your HRA, you must extend that coverage to adult children. If your HRA does not offer coverage to any dependents, then you do not have to extend coverage to adult children. Some HRAs, such as retiree-only HRAs, are exempt from the coverage mandate. Health Flexible Spending Accounts (HFSAs) are exempt from the coverage mandate. However, an employer may choose to extend coverage to adult children under the HFSA of their own volition. Health Savings Account (HSAs) are individually owned accounts governed by a section of the Internal Revenue Code that was not changed by PPACA. So far, it appears adult children may not be covered by HSAs.
Related Questions
- In regard to extending coverage to adult dependents under age 26, can employers require adult children to complete enrollment applications?
- Why are LifeWise and other Blues offering to extend coverage to dependent children under age 26 before the law goes into effect?
- Does the new extension of dependent coverage to age 26 extend to the children of parents on military health insurance (Tri-Care)?