A new report by Community Catalyst “Expanding Coverage for Dependents” addresses the states efforts to provide affordable insurance coverage options for young adults. The report suggests that one way to resolve the uninsured young adults crisis is to extend the period of time that a dependent can remain on the parent’s insurance.
Governor Paterson’s Executive Budget proposes to extend a COBRA-like insurance benefit to young people up to the age of 29 through their parent’s policies. HCFANY had urged the State to pass a law that would allow young adults to be added to parents’ coverage through the age of 30. While we are pleased the Governor has addressed this issue, HCFANY is deeply concerned that the Governor’s version of our proposal would “age rate” the product, a dangerous move for New York’s health insurance consumers. States that permit age rating offer cheap policies to young people, but expensive policies to those of us who are 30 and older. New York is one of the few states that has “pure community rating” which means that all of us must be treated the same by an insurance company, no matter our age or disability.
HCFANY strongly urges the State to simply permit parents to add their young adults to their coverage, but drop the Governor’s “age-rating” twist. New York needs to avoid any precedents that would erode community rating