Thursday, April 11, 2013

Blown Away

One of the goodies in Obamacare is adults are reclassified (or perhaps redefined) as children for purposes of health insurance. Your adult child can continue, or be placed on, your health insurance policy until their 26th birthday.

They do not have to be full time students.

They do not have to live with you.

They do not have to be counted as your dependent on your tax return.

They can be married, living in another state and working full or part time (without access to employer health insurance).

They can also be pregnant, in rehab or in jail and be covered by your parents plan.

Think about that for a moment.

Obamacare has created a situation for adverse selection, either intentionally or by accident. So what does the survey say?

Young adults insured through a parent’s plan under of a popular provision of PPACA are using that coverage most for depression, substance abuse and pregnancy, according to new research.The nonpartisan Employee Benefit Research Institute said Thursday that those conditions accounted for 60 percent of hospital claims for young adults enrolled in parents’ plans in 2011 as a result of health care reform.
Shocker, huh?
So if your adult child just can't get their life together by 26 they can climb back in to the womb of protection at least when it comes to health insurance.
Treatment for mental illness, substance abuse and pregnancy accounted for just one-third of claims among that group.
And those type of claims are not cheap.
A week of inpatient rehab at $3000 per day plus extra's for a visiting shrink to spend a few minutes going over your chart can add up to mega bucks in short order.
Easily a $10,000 claim assuming no complications.
The Rolling Stones said it best. "What a drag it is getting older".

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