Legislature(2007 - 2008)BELTZ 211
03/18/2008 01:30 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| SB297 | |
| HB65 | |
| SB263 | |
| SB179 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 179 | TELECONFERENCED | |
| *+ | SB 263 | TELECONFERENCED | |
| += | SB 297 | TELECONFERENCED | |
| += | HB 65 | TELECONFERENCED | |
SB 179-DEPENDENT HEALTH INSURANCE; AGE LIMIT
2:47:07 PM
CHAIR ELLIS announced SB 179 to be up for consideration.
2:47:11 PM
THOMAS OBERMEYER, staff to Senator Davis, sponsor of SB 179,
said this measure requires family health care insurance coverage
for dependent children who are less than 26 years of age. He
read the following sponsor statement:
Young adults, ages 19-29, are one of the largest
growing segments of the U.S. population without health
care insurance. In 2004, almost 14 million young
adults lacked coverage, an increase of 2.5 million
since 2000. This rapid change is due in part to their
losing coverage under their parents' policies at 19 or
Medicaid or State Children's Health Insurance Program
or graduation from high school or college. Almost half
of college graduates and high school graduates who do
not go to college would be uninsured for a substantial
time after graduation.
Age 19 is a crucial year in health insurance coverage.
Both public and private insurance plans treat this age
as a turning point for insurance coverage. Even if
youth go on to college, parents' insurance plans, they
often stop before graduation. Almost all private
universities and about one-fourth of public
universities require health insurance as a condition
of enrollment. Forty percent of part-time students and
non-students and 20 percent of full-time students ages
19-23 are uninsured...
Insurance coverage is important for this generally
healthy group of young adults who should be encouraged
to start taking responsibility for their own health
care. It has been found that 14 percent of adults 18-
29 are obese, an increase of 70 percent in the 1990s,
the fastest rate of increase among adults. There are
3.5 million pregnancies each year among the 21 million
women ages 19-29. One-third of all diagnoses of HIV
are made among young adults; emergency room visits are
far more common among young adults than children or
older adults. Most young adults have no regular
doctor, no link to the health care system, and more
than one-third of those who do require medical
attention are often saddled with debt and collection
agencies.
States are taking action to mandate coverage for young
adults often allowing for targeted policy options. For
example, in 2006 New Jersey required most group health
plans to cover single adult dependents up to age 30.
Massachusetts as part of its expanded health insurance
law in 2006 considered dependents for insurance
purposes up to age 25 or for two years after they are
no longer claimed on their parents' tax returns. Since
1994, Utah has required coverage through age 26 and
New Mexico provides coverage for unmarried dependents
up to age 25 regardless of school enrollment. Texas in
2003 allowed full-time students to be covered by their
parents' insurance plans to age 25. It's not uncommon
or unreasonable, therefore, that SB 179 would require
offering family health insurance coverage to dependent
children up to age 26.
2:52:00 PM
SENATOR BUNDE asked if there is a separate definition of
dependent child for insurance purposes.
MR. OBERMEYER answered that the IRS defines a dependent as a
person whose parents are contributing to half their costs. Most
plans require parents with children in the student situation to
prove they are students by submitting registration
documentation. A definition of dependent is in each policy.
SENATOR BUNDE said it would be important to hear from the
director of the Division of Insurance. He wanted to know if
requiring this coverage would mean the parents would be saddled
with expensive premiums.
MR. OBERMEYER answered SB 179 has an indeterminate fiscal note.
Because Medicaid is the last resort, this could result in a
savings for the Medicaid program for children who are not
currently covered by third-party insurance. However, these
savings could be reduced if mandatory coverage of an older
dependent increases the cost of health insurance and leads
employers and individuals to drop coverage. Most college
students are very healthy and don't require a lot of care. But
when that one time comes up, this could provide coverage without
burdening the family with a $2,400-policy just for the one
child.
SENATOR BUNDE said this wouldn't necessarily affect a state
employee, but it might affect a privately employed person who
would be faced with higher premiums because of the expanded
coverage.
MR. OBERMEYER replied that could be true, but it may still be
cheaper than providing double coverage for both or not having
any coverage at all for the child - which occurs to a great
number of young people.
CHAIR ELLIS found no one else to testify and said he would hold
SB 179 for another hearing. There being no further business to
come before the committee, he adjourned the meeting at 2:57:50
PM.
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