Since Sept.1, 2009, N.Y.S. health insurance benefits have been extended from 19-year-old unmarried children to 29-year-old unmarried children, but many Korean parents in New York, unaware of the change, may have missed the chance to secure benefits for their children. The revised rule offers coverage to young people who have graduated school, but, under the current economic depression, have not yet found work or have worked as temporary workers without health coverage.
The reason that many Korean parents in New York did not recognize the revised rule or have no idea about the revised benefits is the lack of advertisement by health insurance companies. American private health insurers in New York were slow to announce the revised benefits for children. With end-of-year deadlines for changing health insurance options fast approaching, private insurance companies have ramped up the information and notification process. Still, some companies have not geared up to implement the extended benefits, therefore are unable to send out any detailed information.
The N.Y.S. Department of Health advises that if parents have not received notification from their insurers about the expanded benefits, they should call to check eligibility and secure benefits. In order to claim extended benefits for their children, parents must have group insurance coverage and the child or children must be registered as dependents under the parents' policies. Parents have to cover 100 percent of all expenses for their children's coverage. A son or daughter with a self-funded health plan [a plan in which the employer assumes the direct risk for payment of claims for benefits] is excluded from the extended benefits. Unmarried children must be under 29 years of age, have no insurance coverage provided by an employer, and not be recipients of Medicare benefits.
"These expanded benefits are intended for the protection of young people who are employed but not receiving health insurance from their employers, or are in temporary positions following graduation, due to the poor economy. We have seen a marked rise in the number of young people without health insurance. State legislators approved the bill extending benefits in July 2009. But parents should know that the benefits are not free—parents must pay monthly fees for children. Coverage through a parent's group policy is expected to cost between 50-70% of general insurance fees. This is somewhat similar to payments for COBRA coverage, whereby workers who lose their insurance as a result of a layoff or a reduction in hours can remain on their former employer's group health plan by purchasing continuation coverage for 18 months at 35% of general insurance costs," explained Joseph Kim, an insurance agent in the tri state area.
Mr. Sang-ho Park, at Best Integrated Insurance, said, "Basically, the New York State government doesn't demand that private companies provide health insurance for the children of their staff children, but usually companies do provide some insurance benefits for them. So insurers kick young adults off their parents' policies at age 19 – or when they graduate from high school – or at 22, when they graduate college. Because of this practice, the new expansion of health benefits in New York State is significant. Whether your children graduate or not, they can continue to receive benefits up to age 29."
The periods for registration to obtain extended include: 19-year-olds already included in a parent's policy need to apply 60 days before the son or daughter turns 20; within 60 days after children have moved to New York State from another state; during the annual renewal and selection review for benefit options; and, within 12 months after a first-time application for new benefits.
