Effective June 1, 2010, CIGNA will work with employer clients to extend coverage to young adults under the age of 26 who are currently listed as dependents under their parents’ CIGNA health plans. Because newly-enacted healthcare reform provisions to extend dependent coverage to age 26 do not take effect until September 23, 2010, CIGNA is taking this proactive step to expedite the mandate and help prevent a coverage gap for many young adult customers, particularly graduating college students.

This offer to extend coverage on June 1 automatically applies to dependents that currently are covered under their parents’ fully insured group plans offered through CIGNA. CIGNA will work closely with all fully insured client employers to implement the extension and ensure these young adults have health coverage available to them.

Self-insured client employers may also participate, but must notify CIGNA in writing of their intentions. If the employer decides to offer extended dependent coverage, it will become effective on the first day of the following month after CIGNA has received the employer’s written request. Should a group decline early adoption, their plan’s dependent care coverage extension to age 26 will take effect, as mandated by law, on the first renewal after September 23, 2010.

Employers should note that adult children under the age of 26 who are currently not covered by a CIGNA plan – including those currently covered by COBRA – may enroll during the next renewal period that occurs after September 23, 2010.

Should you have any questions regarding dependent eligibility and extension of coverage, please contact our office at 919-403-1986.