Travis Software Official Blog

ObamaCare changed the future landscape of healthcare, but one change that is currently in effect is that a group health plan or health insurance issuer that offers group health insurance coverage must make dependent coverage of children available until a child’s attainment of 26 years of age. Specifically, for plan years beginning on and after January 1, 2011, a group health plan must provide health coverage for employees’ children until the child turns 26.

In 2010, the IRS issued Temporary Regulations regarding the coverage requirement. Travis Software usually does not make changes based upon temporary regulations, however, we received customer suggestions to incorporate this new change and felt it appropriate considering all of the attention ObamaCare is getting.

Next week, both WebCOBRA and TravisCobra systems will be enhanced with a new benefit plan option regarding child dependents and whether the plan seeks to extend coverage through to: the child’s (i) actual birthday, (ii) the end of the month that the child turns age 26, or (iii) the end of the year that the child turns age 26. This new option will work with a current existing option titled “Coverage Termination Method” that determines the first day after loss of coverage. The system will simply review a specific child dependent’s age and, if either such child is 25 or 26, the system will first look to the new option to determine the first day after loss of coverage. If no selection for this new option has been selected, the system will default to the existing option in place.

The temporary regulation permits an Administrator to terminate coverage as of the actual child dependent’s birthday, but the additional alternatives were added for flexibility since there are multiple interpretations that employers/insurance companies may take.

Upon the enhancement’s release, we will issue Release Notes that further detail the enhancement and the instructions on how to change the system default for each benefit plan.

To review the IRS Temporary Regulations, click here: http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ecfr&sid=a35eb6b50b3f548d078afc85dc7aebd7&rgn=div8&view=text&node=26:17.0.1.1.5.0.1.76&idno=26.