Beginning in 2015, large employers with over 50 full time employees must offer minimum essential health coverage to the dependents of full-time employees or pay a penalty. A dependent includes an employee's biological and adopted (or legally paced for adoption) son or daughter through the calendar month in which the child turns age 26. Step-children and foster children do not have to be covered.
New regulations released a few weeks ago give transition relief to employers who do not provide dependent coverage, presently. A large employer will not have to offer minimum essential coverage to dependents in 2015 so long as the employer did not offer coverage in 2013 or 2014 and then dropped the coverage, and so long as the employer is taking steps to set up proper coverage for dependents starting in 2016.
Employers with less than 50 full time employees are not required to offer dependent coverage under health care reform.
Employers who do not offer dependent coverage should be prepared to offer such coverage. Employers who offer dependent coverage already may wish to consider conducting a dependent audit to confirm that benefits are being paid only to eligible dependents. BAS can assist with a dependent audit. For more information on BAS’ dependent audit services, contact info@BASusa.com.
