We all keep hearing about health care reform hitting soon, but there is so much detail a lot of things are being missed. Here's one you will need to know about, how family health insurance rates on a small group plan may change.
Small Group health plans--currently when you buy insurance for you and your family through your employer you have four categories of rates--employee only, employee and spouse, employee and child/children and employee and family. The rates where kids are involved, with children and family coverage, the rate is the same whether you have one kid or six. NOW, the calculation will change. Instead of a flat rate, you will have a specific rate for the employee, the spouse, and each child up to three kids. Beyond 3 kids, no additional cost.
But what if you have 4 kids, and one of them is over 21? That adult child can stay on the plan but they will have a specific rate of their own, you'll be paying for that. So if you have Mom age 50, Dad age 50, they will each have a rate, then kid Mikey at age 22 will have a rate, and the remaining 3 kids under age 21 will have a rate. If all 4 kids had been under age 21, then you'd pay for three, get one free.
So it will be a very good idea to evaluate whether it makes sense to keep your adult child between ages 21-26 on your group plan. One reason that was such a great idea in the past was when they weren't able to get coverage, but that will not be an issue come January 1, 2014.
Tomorrow--what will happen on the calculation for rates for individual plans? Stay tuned...