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Keeping Young Adults On Health Care Plan Raises Costs, Study Finds

04/12/13

  11:10:44 am, by MedBen5   , 178 words,  
Categories: News, Health Plan Management

Keeping Young Adults On Health Care Plan Raises Costs, Study Finds

Young adults who opted to remain on their parents’ coverage under an Affordable Care Act provision incurred somewhat higher costs that those who had their own coverage, according to new research by the Employee Benefits Research Institute.

The Wall Street Journal reports that the nonpartisan data analysis organization analyzed a large company that signed on an additional 700 young adults in 2011, when the provision first went into effect. Under the health care reform law, children up to the age of 26 can stay on their parents’ plan, even if they are married or can get coverage through their own employer.

The researchers found that adults who stay on their parents’ insurance until age 26 tend to have more claims for mental health, substance abuse and pregnancy. Newly enrolled young adults incurred $2,866 in health costs, on average, or around $2 million in all – 15% more than a comparison group of 13,000 young adults who had their own coverage through the same company.

Earlier studies by other researchers have estimated that young adults covered under their parents’ plans added anywhere from 0.2% to 2% to health costs.

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