Health care law raises age students stay on insurance

By Kaitlyn Schallhorn

The new health care reform law is full of many confusing technicalities, but what exactly does the bill mean for students? “One of the biggest things is how students will still be covered under their parent’s insurance plan until they are 26,” said Dr. Keith Benson, associate professor of management and marketing.

Currently, most plans consider full-time college students as dependents of their parents until they reach the age of 23.

It really just depends on each individual insurance carrier, Benson said.

However, this new age limit may not actually benefit students, but hinder them. Recently graduated young adults who don’t move back into their parent’s homes will still be required to purchase health insurance, or face some sort of consequence.

“Theoretically, if you do not have health insurance, you may get fined or go to jail,” Benson said. The IRS will determine whether a person is considered a dependent.

Another problem students may face with the new health care reform law is the tax on tanning beds. The law now requires a 10 percent tax on indoor tanning salons.

Brooke Alberson, freshman elementary education major, agrees with the new tax.

“I think it’s fair because they already tax cigarettes and alcohol that cause problems with health, so why not tax tanning beds that can give you cancer,” she said.

Alberson admitted to going to tanning beds before big social events, but does not attend them on a regular basis. This new tax won’t prevent any future visits, she said.

The tanning tax will go into effect July 1, 2010, but many of the other reforms will come at a later date.

There are still a lot of unknowns out there with the health care reform law, Benson said.

Quick Facts

• Insurers are now required to provide coverage to non-dependent children up to age 26.
• Insurers are barred from dropping coverage for people who get sick and from charging higher premiums for individuals based on age or past medical conditions.
• Individuals are required to have health insurance or face fines up to $695, starting in 2016.
• Companies with more than 50 employees are required to provide insurance or face a penalty of $2,000 per employee if any of their employees are able to receive the government’s health care subsidy.
• Insurance companies providing high-ticket plans will pay a 40 percent tax, starting in 2018.
• Although health care reform is dominating water cooler conversations, major changes in the government’s student loan program were also a part of the recent legislation passed by Congress.
• Starting in July, government loans for college students will no longer come from private banks. These direct loans will make the federal government $500 billion in the first 10 years, according to the Congressional Budget Office.