U.S. Urges Insurers to Aid Graduates Until Health Bill Takes Effect
A provision in the new health care law would make young adults eligible to be covered by their parents’ insurance plans through age 26 -- but the measure won't take effect until late September. Because the new law won't be in force when a new crop of graduates leave college -- and fall off their campus health plans -- in May, the Obama administration is asking insurers to voluntarily bridge the potential gap in students' coverage. In a letter to insurance companies Monday, Kathleen Sebelius, the secretary of health and human services, urges them to let such young adults remain on their parents' health care policies rather than force them off the plans only to let them re-enroll in September when the new law takes effect. Several leading insurance companies have already agreed to that approach, Sebelius said. "This action would enable young, overwhelmingly healthy people, who will not engender large health care costs, to stay in the insurance pool and retain important insurance coverage," she said.