Relative to coverage of children under the state retiree insurance plan.
The revision could significantly increase the number of dependents eligible for insurance coverage, which may have fiscal implications. The Department of Administrative Services has noted that while the bill does not grant funding or authorize new positions, it could lead to indeterminable state revenue and expenditure implications based on the potential increase in enrollment for these young adults. The cost for coverage for a dependent is approximately $1,044.42 per month, paid by the retiree, and this figure could rise should more dependents opt into the plan due to the revised eligibility criteria.
House Bill 552 (HB552) aims to revise the eligibility criteria for coverage under the state retiree insurance plan. The primary change proposed by the bill is the removal of the requirement for young adult children of retired state employees to be full-time students in order to qualify for coverage. This amendment affects children aged 19 to 25, thereby expanding their eligibility for health insurance benefits under their parents' retiree health plan.
While the bill is designed to provide broader coverage for young adults, it may also lead to some contention regarding the financial sustainability of the retiree health benefits program. Critics might argue that increasing enrollment without clear funding mechanisms could burden the program financially. However, supporters may contend that providing coverage for dependents who are not full-time students addresses a critical gap in health coverage for young adults, reinforcing the need for comprehensive healthcare access for families.