Louisiana Senate Bill SB230

Louisiana 2010 Regular Session

• Introduced: 3/29/10
• Refer: 3/29/10
• Report Pass: 4/14/10
• Engrossed: 4/19/10
• Refer: 4/20/10

Caption

Provides for increasing the termination age for children under health and accident policies to age 26. (8/15/10) (EG INCREASE GF EX See Note)

Impact

The implications of the bill are significant for health and accident insurance in Louisiana. By increasing the age cap for dependency, young adults who are navigating education or entering the workforce can maintain health coverage without the stress of being cut off prematurely due to age. The bill also establishes that health insurers cannot increase premiums based on the addition of this dependent coverage unless no other dependents are covered, promoting fair treatment and easing financial stress for policyholders.

Summary

Senate Bill 230 aims to extend the coverage age for dependents under health and accident insurance policies from the age of 21 to 26. This bill applies to both married and unmarried children and grandchildren. It eliminates the requirement that the children must be full-time students and also repeals previous stipulations regarding custody for grandchildren. The proposed law mandates that insurers must offer a 30-day special enrollment period during which dependents can be added without any condition precedent, thus enhancing coverage accessibility for families.

Sentiment

General sentiment surrounding SB 230 appears to be supportive, particularly among families with dependents nearing the age of cutoff. Advocates for the bill argue it reflects changing societal norms and the longer period young adults often require support due to economic conditions. However, some concerns are raised regarding the financial implications for insurance providers and potential future increases in premiums across the board as a consequence of extended coverage.

Contention

Notable points of contention include the potential burden on insurance companies due to the expanded coverage requirements, which could lead to increased premiums for all policyholders. Opponents of the bill may argue that this might complicate the existing insurance market or challenge the sustainability of dependent coverage rules. The debate highlights the intersection of health insurance regulation and family support dynamics in the current economic landscape.