SACRAMENTO, California. (AP) – California may become the only state that allows adult children to add their parents to their health insurance plans as a dependent policy, a policy proposal aimed at increasing the insurance coverage of low-income people living illegally in the country. are eligible for government-funded coverage.
Former President Barack Obama’s health care law allows parents to keep their adult children in their health plans until they are at least 26 years old, a change that has helped millions of young people switch to adulthood as jobs became scarce after the Great Depression. The change was so widespread that many states went further, allowing adults to care for their children under the age of 30.
California can now do the same for seniors retiring after the epidemic. The proposal in the state legislature, authored by MP Miguel Santiago, passed its first committee hearing on Tuesday. If it becomes law, California will be the only state to allow it, according to the state insurance department.
Supporters, including insurance commissioner Ricardo Lara, say it will save families money, among other things, by limiting their spending to the maximum out-of-pocket limit.
“When we were young, our parents took care of us,” Lara said. “Now we can take care of them when they need it most.”
But business groups say adding large numbers of people to their large group insurance plans will simply increase their already rising premium costs. Employer bonuses will increase from $ 200 million to $ 800 million annually, depending on how many people are enrolled. The result, they say, will be higher health care costs for everyone.
“(This bill) will deepen access to health care; it will sober up the budgets of small employers as they finally begin to recover,” said Preston Young, a political advocate for the California Chamber of Commerce.
The bill cannot be an open invitation for parents to opt out of their health insurance plans to join their children. To be eligible, parents must meet the Internal Revenue Service dependency definition, which means they rely on their children for at least 50% of their support.
But some Democrats worry that increased costs for employers and their employees could ultimately prevent it from happening. On Tuesday, Assemblyman Wood, a Democrat from Santa Rosa, chairman of the House Health Committee, voted in favor of the bill, but said it was “torn.”
“I think the bill is likely to increase access to health care, it may offer affordable coverage,” he said. “But I feel that more work can be done here to understand what the rise in prices means for employers and, ultimately, for employees.”
Proponents of her case have been working to make the actual transcript of this statement available online. Proponents of her case have been working to make the actual transcript of this statement available online. The bill is intended to increase health coverage for vulnerable people in the country. These individuals are also not eligible for federal assistance to purchase private coverage at Closed California State Health Insurance.
But it is not clear how many parents will join their children’s insurance programs if they had the opportunity. An analysis by the California Health Benefits Review Program estimates 20,000-80,000 parents.
It’s hard to predict, as state lawmakers will be able to expand Medicaid state benefits by the end of this year to include more than 65 adults living illegally in the country. If this were to happen, many families would prefer their parents to take advantage of this option instead of joining their health insurance plans as it will not harm them.
Another risk for employers would be parents who live outside the United States moving to a country to live with their children for insurance.
“The opportunity to receive care in the United States will be very attractive, especially for those with high-risk conditions,” the analysis said.
Lara’s office denied the allegations, saying “this is always an argument when it comes to expanding health care options.” Since 2016, the California Medicaid program has included children living illegally in the United States. The state has not seen a corresponding increase in immigrants coming to the state.
“The reality is that expanding health care choices is helping Californians to be clear,” Lara’s office wrote in an email to The Associated Press. “The requirement in state law for someone to ‘live, work or live’ in California will apply.”