What happens in the year a dependent turns 27?
Under the federal law, adult dependent coverage only applies until the date the dependent reaches age 26; however, some plans may allow for coverage to continue beyond the dependent’s 26th birthday. If coverage extends beyond the dependent’s birthday (for example through the end of the plan year), the value of the coverage can continue to be excluded from the employee’s income for the full tax year in which the child reached age 26. In addition, some states may require that adult dependent coverage continue beyond age 26. (Please check with your state’s department of insurance to see if your state has such a requirement.) Once the dependent ages off the plan, he or she may be eligible to continue coverage through federal COBRA or state continuation regulations.
