Can Health Insurance company increase their rates?

[cyjeff]

Although the laws are changing, it is still quite common and quite legal in many states for there to be a requirement that a dependent over the age of 18 to be enrolled in school full time before they can be considered a legal dependent for purposes of being on their parents' insurance.

That is what I am getting at.... You cannot just have an unemployed adult on your insurance as a dependent...

A student, yes... a hobo, no.

 

[ecmst12]

It would be LEGAL for an unemployed adult child to be an eligible dependent on a policy. But for a self insured, non government employer policy in that state, it is legal for one to NOT be an eligible dependent.

 

[gkisystems]

And she is prevented from getting her own job/insurance why?

Due to the current situation with the economy, local governments and school districts are strapped for cash and not hiring teachers. She has graduated with a degree in elementary education but that doesn’t do her any good if no schools are hiring.

Although the laws are changing, it is still quite common and quite legal in many states for there to be a requirement that a dependent over the age of 18 to be enrolled in school full time before they can be considered a legal dependent for purposes of being on their parents' insurance.

Prior to the new law going into effect this was true. Now 18-26 year olds have no requirement to be a full time student – at least in Illinois.

How do you know the employer does not self insure? The fact that there is an insurance company involved means nothing - they could merely be acting as a third party administrator, paying claims with the employers money. This is a VERY common setup. And it would mean they are exempt from the law since they are NOT a self insured COUNTY, MUNICIPALITY, or SCHOOL DISTRICT, they would be a self insured private company.

The qualifying event was her graduating from college and so losing her eligibility as a dependent under her parents' plan. What she is being offered, I am 99.999999% sure, is Cobra.

If the employer is self-insured, they would be a self insured municipality because the employer is the fire department. She has not lost eligibility as a dependent under her parents’ plan because the Illinois law states that she is covered until age 26. Therefore, COBRA would not go into effect until after age 26.

 

[cbg]

Even in Illinois, there are exceptions to that rule. It does not apply if the employer is self-insured. It does not apply if dependents are not covered anyway. It does not apply in most cases if the plan was issued outside of Illinois.

There is no reason a municipality cannot be self-insured.

 

[ecmst12]

The law apparently specifically applies to self insured municipalities though.

However unless you read the ENTIRE law, you won't know what all the exceptions and contingencies are.

 

[acwakip]

I am not sure if this makes a difference or not, but Health Care Service Corporation is BCBS of IL, TX, NM, and OK.

 

[cbg]

No, it doesn't make a difference.