One of the requirements under the PPACA is for health plans to allow enrollment by children of an employee or retiree who are under age 27. For many plans this means additional expense, especially when the employee may already be enrolled in family coverage that includes the employee and any number of dependents. What to do, what to do? Well some employers will change their plan so that the employee’s payroll deduction is based on the number of dependents actually enrolled. That means if you have a spouse and two children currently enrolled and you now add a twenty-five year old on your coverage, you pay more. It also means that all employees and retirees will pay based on the number of children they have enrolled.
Consultants are out en mass selling ideas to employers that will mitigate the impact of PPACA on plan costs. Unintended consequences is big business!
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