Wisconsin Expands Health Care Coverage to Young Adults via Parents Plan

In an effort to provide coverage for more young adults, Wisconsin has expanded health insurance coverage to young adults through their parents' plan.

With the recent move, Wisconsin joins states including Pennsylvania and New York in covering more young adults.

Gov. Jim Doyle signed an emergency rule from the state's insurance department, implementing a new state law expanding coverage to young adults under 27.

The emergency rule clarifies a law passed in June 2009, requiring health insurers to cover eligible young adults, such as those in the military, students, non-resident young adults with parents residing in Wisconsin and young adults previously dropped from coverage due to their age.

According to Doyle, the rule makes sure that affordable health insurance is available to young adults, a group the governor said traditionally has high levels of being uninsured.

"Questions were raised regarding provisions of the new law,' Doyle said in a statement. "The rule provides needed clarity to ensure eligible young adults have quick access to health care coverage.'

To be eligible for the coverage, participants must be between the ages of 17 and 27; unmarried; and either ineligible for coverage through their employer or whose premium contribution through their employer is greater than the additional premium amount their parent is required to pay to enroll the young adult to a plan.

The statute goes into effect for health insurance policies issued or renewed beginning Jan. 1, 2010.

Approximately 20 states require insurers to offer parents coverage of adult children through a process sometimes referred to as "slacker plans,' according to the Council for Affordable Health Insurance, which is an advocacy group whose members include insurers, health care providers, actuaries and insurance brokers.

Approximately 10 states have enacted such laws in recent years.

In June, Gov. Ed Rendell of Pennsylvania signed into law a provision that uninsured, single adult children up to age 30 can be covered under their parents' plan. In August, New York Gov. David Patterson extended coverage to young adults up to age 29.