New Jersey To Extend Age of Dependency for Health Insurance
New Jersey in May will increase the age of dependency for health insurance to 30, the oldest in the nation, USA Today reports.
Under a new law, unmarried adults younger than age 30 who do not have dependents and live in New Jersey can receive health insurance through their parents, regardless of whether they are students or reside with their parents. The law does not apply to parents who receive health insurance through the federal government or large companies with self-insurance.
New Jersey Assembly member Neil Cohen (D), who sponsored the law, estimates that the legislation might benefit as many as 200,000 young adults in the state.
Some specifics of the law, such as the additional health insurance premiums for parents of young adults, remain undetermined.
Cohen estimated the additional health insurance premiums for young adults at $1,200 to $2,000 annually, but the New Jersey Department of Banking and Insurance estimates the additional premiums at $2,400 to $6,000 annually.
The law has raised concerns among health insurers.
Susan Pisano of America's Health Insurance Plans said that the law is "too broad and may have unintended consequences, making coverage for those who are part of employer groups more expensive."
According to USA Today, six other states in the past few years have increased their ages of dependency, and several more states have considered such proposals (Jayson, USA Today, 3/16).