Compliance

The Affordable Care Act (ACA) presents many new compliance challenges that range from ensuring plan designs incorporate the required benefits to notifying employee’s about the public Exchange.

Coverage of Dependents to Age 26

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Group health plans providing coverage to dependents must extend coverage to adult children up to the age of 26 regardless of the dependent’s eligibility for other coverage.  However, grandfathered plans are not required to cover adult children to age 26 if the child is eligible for another employer-sponsored plan until the first day of the plan year beginning on or after January 1, 2014.

Additional information on coverage of adult children up to age 26 can be found in our series of Briefings, which are available below.

Additional Information
AB 36 Conforms California Tax Statutes to Federal Health Care Reform Laws for Adult Children
This Briefing describes AB 36, which was signed into law on April 7, 2011 and conforms California tax statutes to the federal law governing the taxability of employer-provided group health benefits for adult children.
California Tax Treatment of Adult Children – Update
This Briefing outlines guidance issued by the California Franchise Tax Board (FTB) and the California Employment Development Department (EDD) in January 2011 regarding the tax treatment of adult children in California.
Health Care Reform: Potential Tax Implications for Adult Children Health Coverage
This Briefing explains that, due to a loophole in California law, employees may pay income tax on the value of benefits provided to adult children covered on their health plan.
Health Care Reform: Implementation Guidance – Adult Children
This Briefing provides guidance related to the coverage of adult children and incorporates frequently asked questions from the Employee Benefits Security Administration of the Department of Labor.
Health Care Reform: Webinar Q&A – Mid Year Elections and Expanded Coverage for Children
This Briefing provides answers to questions from our June 17, 2010 webinar on dependent changes and mid-year election rules.
Health Care Reform: Coverage Eligibility – Children to Age 26
This Briefing outlines the interim final regulations issued that mandate group health plans cover dependent children until they are 26.