Health insurance

Health-care overhaul offers insurance benefits to young adults Washington Post

25.05.10

The new health overhaul law is expected to help a lot of young people, whether students or not. One widely publicized provision taking effect in October will allow young adults to stay on their parents' health insurance until age 26. Many insurers have said they'll implement it in time for students graduating this spring.

But for students who, like Smith, are older than 26, and for those who can't take advantage of the law because their parents don't have coverage or for other reasons, student health plans may be the only option. And unfortunately, many college plans offer limited protection, even for this generally healthy group. "Sixty percent of the plans out there are pure junk," says Stephen Beckley, a health-care management consultant for colleges and universities who's based in Fort Collins, Colo.

In some important ways, the new law has the potential to stiffen the backbone of student plans. Starting in October, all health plans, including college ones, must eliminate lifetime limits on coverage and most annual limits as well. The law also requires health plans to spend 80 to 85 percent of the premiums they collect on clinical services and quality measures starting next year, or give consumers a rebate.

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