Yesterday I published an article about changes in how small group health insurance rates were going to be calculated come January 1, 2014. Health care reform will be 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 your individual plan may change.
Individual/family health plans--This won't be as drastic a change as it will be for group health plans because in the past 2-3 years insurance carriers have been doing 'per member' rates. You may actually get a bit of a break, but remember, basic rates in general will be going up, so the concept of a price break may be short lived. The rates where kids are involved, instead of a flat 'family' rate, you will have a specific rate for the each adult 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 Janie 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 if you have an adult child on your group health plan 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. Group plans tend to be more expensive. 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.