New Jersey Assembly Committee Advances Bill to Extend Health Coverage for Disabled Adult Children
A New Jersey legislative committee has approved a bill that would require health insurers to continue offering dependent coverage to certain adults with physical or intellectual disabilities after they turn 26, a move supporters say would provide greater certainty and stability for families caring for children with lifelong disabilities. The measure was approved by the […]
A New Jersey legislative committee has approved a bill that would require health insurers to continue offering dependent coverage to certain adults with physical or intellectual disabilities after they turn 26, a move supporters say would provide greater certainty and stability for families caring for children with lifelong disabilities. The measure was approved by the Assembly Oversight, Reform and Federal Relations Committee with amendments and now advances to the full Assembly for consideration. If this bill were to become law, insurers would be required to offer dependent coverage to adult children age 26 and older who are incapable of self-sustaining employment because of a physical or intellectual disability and who depend primarily on a parent for support and maintenance. Under current New Jersey law, coverage may continue for a dependent adult child after age 26 while the parent remains with the same employer; however, if the parent changes employers, the new employer is not required to offer continued coverage for that dependent adult child over age 26. While some insurance policies already permit disabled adult children to remain on a parent’s plan, the legislation would establish uniform standards across a wide range of health plans and spell out the circumstances under which coverage must continue. To qualify, the adult child would need to have developed the disabling condition before reaching the policy’s age limit, have been insured under the parent’s plan before aging out of dependent coverage, and have remained continuously insured afterward. The legislation would apply broadly to hospital service corporations, medical service corporations, health service corporations, commercial insurers, health maintenance organizations and certain group health plans operating in New Jersey. The bill also seeks to prevent disruptions in coverage when families switch insurers. If an adult child with a qualifying disability was covered under a previous health plan, a replacement insurer would be required to offer dependent coverage as well. Supporters say the measure would provide peace of mind to parents caring for adult children with significant disabilities, ensuring they are not at risk of losing health insurance solely because of age or a change in insurance carriers. The proposal does not create an entirely new category of dependent coverage. Rather, it strengthens and standardizes existing protections by establishing clear eligibility requirements and guaranteeing continuity of coverage for qualifying adults with disabilities. If enacted, the law would take effect 90 days after enactment and would apply to health insurance policies and contracts delivered, issued, executed or renewed on or after that date.