New survey of parents shows they're not too keen to pay for their adult kids' health care.
NEW YORK (CNNMoney) -- Call it tough love.
Now that health reform says uninsured adult kids can stay on their parents' health care plans for a couple of more years, guess what? Moms and dads are saying not on my dime!
A new survey of parents by eHealthInsurance, an online seller of individual health care from 180 insurers, shows the new benefit may not be as popular with parents as hoped.
This could be a big problem for college grads who face a brutal job market that severely hampers their chance of finding a full-time job with health insurance.
Even grads who score a part-time job often get inadequate health care coverage through work, or none at all.
The government had hoped that extending the age for dependent coverage to 26 would drastically reduce the large number of young adults who do not have any health care coverage.
But the survey's results show that parents, already facing higher costs to cover their families, are put off by the additional costs of taking advantage of the new provision.
"There was much more enthusiasm about this provision when parents first learned about it last year," said Carrie McLean, consumer health insurance specialist with eHealthInsurance.
But that eagerness waned after open enrollment, when parents learned how costly it would be to add or keep their adult kids as dependents on their plans longer, she said.
On average employees who go from individual coverage to family coverage pay $158 more in monthly premium contributions, Tracy Watts, senior health care consultant with Mercer, said.
Watts said coverage expansion for adult dependents was the number one question employers got from employees after health reform passed.
In fact, sometimes it costs less to buy an individual plan for an adult child than to add them to a parent's plan, especially if the child lives in a region not covered by the parents' doctors or provider networks.
Watts said her clients have reported a 5% increase in the number of new dependents added to employees plans since the provision went into effect.
Since this is the first year for the provision, it's not clear if that level means parents are shying away from taking advantage of it or not.
What is certain is that employers will expect workers to share the cost of adding each extra dependent to their plan. Watts said 14% of employers surveyed by Mercer last year said they would consider charging higher premiums when a dependent is added. We'll know how much higher during the upcoming open enrollment.
The eHealth survey of 500 parents of full-time college students and recent grads shows just how uneasy parents are about the costs of the new provision.
|What we want Apple to unveil at WWDC|
|Millennials squeezed out of buying a home|
|7 traits the rich have in common|
|Big Data knows you're sick, tired and depressed|
|Your car is a giant computer - and it can be hacked|
|Overnight Avg Rate||Latest||Change||Last Week|
|30 yr fixed||3.90%||3.85%|
|15 yr fixed||3.07%||3.00%|
|30 yr refi||3.96%||3.92%|
|15 yr refi||3.12%||3.10%|
Today's featured rates:
|Latest Report||Next Update|
|Home prices||Aug 28|
|Consumer confidence||Aug 28|
|Manufacturing (ISM)||Sept 4|
|Inflation (CPI)||Sept 14|
|Retail sales||Sept 14|