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Healthcare Business News

Rule would require big employers to offer unsubsidized dependent coverage

Provision is expected to have little impact on employers.

By Paul Barr
Posted: January 2, 2013 - 3:00 pm ET

Those employers that are required by the Patient Protection and Affordable Care Act to offer qualified health insurance coverage or pay a penalty are also required to offer unsubsidized health insurance coverage to their employees' dependent children, under a proposed rule unveiled late Dec. 28.

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The National Business Group on Health argues that the law does not concern dependents and for that reason there should be no dependent requirements in the rule, said Steve Wojcik, vice president of public policy for the employers group. That said, the proposed IRS rule doesn't stipulate that the dependent coverage be affordable or be subsidized, as it does for the employee, or that spouses be covered, Wojcik said.

He said he doesn't expect any major changes from employers regarding dependent coverage given the terms of the proposed rule.

The coverage requirement generally applies to employers with 50 full-time employees and full-time equivalents.

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